World food prices near four-year high in September, UN say

In September, global food prices reached their highest level in nearly four years, according to the United Nations Food and Agriculture Organization (FAO). Disruptions in logistics and weather concerns contributed to the rise in crop markets, the FAO reported. The FAO Food Price Index, which monitors monthly changes in international prices for a selection of food commodities, averaged 136.0 points in September, up from 134.0 in August and the highest level since November 2022.

Maximo Torero, the FAO Chief Economist, noted that a persistent and growing buildup of global commodity prices is being driven by disruptions in the Strait of Hormuz and the Black Sea, along with climate shocks affecting energy, transport, and key food commodities. The FAO sugar price index increased by 6.1% from August, marking its third consecutive monthly rise due to adverse weather threatening production in key zones.

The cereal price benchmark rose by 5.1% in September, with reduced yield expectations for US corn adding to pressures from the Black Sea grain trade restrictions. Vegetable oil prices climbed by 0.9%, mainly driven by palm oil as demand remained strong and concerns over El Nino-related production risks in Southeast Asia persisted.

On the other hand, the FAO's overall meat index decreased by 1.1%, partially due to a drop in European Union demand stemming from new import rules. Separately, the FAO maintained its forecast for global cereal production in 2026 at 2.979 billion metric tons, 2.1% below the previous year's peak but still the second-largest harvest on record.

FAO lowered its estimate for world cereal trade in 2026/27 by 0.7% from the previous month, citing lower wheat and maize export expectations due to constrained Black Sea shipping.