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[INTERNATIONAL] · United States, Brazil, Türkiye, Vietnam, United Arab Emirates · 27 sources

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FAO Food Price Index rises to highest level since November 2022

The FAO Food Price Index rose by 1.5% in September to an average of 136 points, marking its highest level since November 2022. This increase was primarily driven by rising prices in cereals, sugar, and vegetable oils.

Cereal prices climbed 5.1% due to logistical constraints in the Black Sea and drought conditions in parts of North America. Specifically, wheat prices rose 6.3%, while corn prices increased 5.6% amid yield concerns in the United States and export constraints in Brazil. Sugar prices saw a significant 6.1% jump, driven by El Niño-related supply concerns.

Vegetable oil prices rose 0.9%, influenced by palm oil demand and Southeast Asian drought risks. Conversely, the meat price index fell by 1.1% due to high export supplies of poultry and pork. FAO Chief Economist Maximo Torero warned that ongoing disruptions in the Strait of Hormuz and the Black Sea, combined with climate shocks, could soon pass these commodity price pressures through to consumer food prices, particularly in import-dependent nations.

Entities

Black Sea · El Niño · Food and Agriculture Organization of the United Nations · Máximo Torero · North America · Strait of Hormuz · United States

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