World food prices climb to near four-year high in September

World food prices saw a significant increase in September, reaching their highest point in nearly four years, according to the United Nations' Food and Agriculture Organization (FAO). The FAO Food Price Index, which tracks international prices of a basket of food commodities, averaged 136.0 points, an increase from the revised 134.0 points in August and the highest level recorded since November 2022.

This rise was attributed to a combination of factors, including logistics disruptions in key trade routes like the Strait of Hormuz and the Black Sea, as well as concerns over weather patterns such as El Nino. These pressures have particularly affected sugar prices, pushing them to an 18-month high, and wheat futures, which reached a three-year peak early last month due to war-related trade collapse.

While prices for cereals, sugar, and vegetable oils all increased, quotations for meat and dairy products declined. FAO Chief Economist Maximo Torero warned that sustained commodity price pressures could soon translate into higher consumer food prices, especially for import-dependent nations. In a separate report, the FAO maintained its forecast for global cereal production in 2026 at 2.979 billion metric tons, a 2.1% decrease from the previous year but still the second-largest harvest on record. However, the forecast for world cereal trade in 2026/27 was reduced by 0.7% due to anticipated lower wheat and maize exports stemming from Black Sea shipping route constraints.