World food prices near four-year high in September: UN
Indices for sugar, cereal, meat and more are all higher month on month
[PARIS] World food prices rose in September to their highest in nearly four years as logistics disruptions and weather concerns affected crop markets, the United Nations’ Food and Agriculture Organization (FAO) said.
Fears about a severe El Nino weather pattern have pushed international sugar prices to an 18-month high, while a war-related collapse in Black Sea trade pushed wheat futures to a three-year peak early last month.
The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, averaged 136.0 points, up from a revised 134.0 for August and the highest reading since November 2022.
“We are seeing a persistent and increasingly broad-based build-up in global commodity prices, as disruptions in the Strait of Hormuz and the Black Sea combine with climate shocks, putting pressure on energy, transport and key food commodities,” FAO chief economist Maximo Torero said.
“If sustained, these pressures will soon pass through to consumer food prices, especially in food and energy import-dependent countries.”
FAO’s sugar price index jumped 6.1 per cent from August, marking a third consecutive monthly increase as adverse weather threatened to curb supply in major production zones.
The agency’s cereal price benchmark rose 5.1 per cent month on month, with reduced yield prospects for US corn adding to pressure from disruptions to Black Sea grain trade.
Vegetable oil prices edged up 0.9 per cent, driven by palm oil on the back of strong demand and concerns over El Nino-related production risks in South-east Asia.
FAO’s overall meat index eased 1.1 per cent. That reflected lower poultry prices, partly linked to a drop in EU demand as new import rules took effect.
In a separate report, FAO kept its forecast for global cereal production in 2026 almost unchanged at 2.979 billion tonnes, 2.1 per cent below the previous year’s peak but still the second-largest harvest on record.
FAO cut its forecast for world cereal trade by 0.7 per cent from a month earlier, citing lower wheat and maize export expectations amid constrained Black Sea shipping. REUTERS
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