Published on: 2026-08-08
Source: United Nations – United Nations –
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August 7, 2026 Economic Development
Global food commodity prices rose again in July: heat, rising energy costs, and persistent geopolitical tensions pushed up prices of grains, vegetable oils, and sugar. This is stated in the monthly report of the Food and Agriculture Organization of the United Nations (FAO).
The FAO Food Price Index, which tracks the international price dynamics of a basket of key food commodities, stood at 131.1 points in July. This is 0.6 percent higher than the June level and one percent higher than the figure a year ago.
Grain price surge
The growth was most noticeable in the grain segment. The grain price index increased by 3.4 percent.
Global wheat prices surged by 5.8 percent due to concerns about ongoing export disruptions through the Black Sea and the potential impact of recent abnormal temperatures on crop yields in key producing countries.
Corn prices rose by 3.6 percent amid hot and dry weather in certain regions of the USA and rising energy market prices fueled by geopolitical tensions. The rice price index remained generally stable.
Prices of vegetable oils are also rising
Vegetable oils have also become more expensive: the index rose by 2 percent and reached its highest level since June 2022.
Prices for palm oil have risen due to sustained demand from Indonesia’s biodiesel sector and increasing oil prices.
Soybean oil prices have risen due to high demand for raw materials for biofuel in the United States and increased global imports driven by improved price competitiveness.
At the same time, prices for sunflower and rapeseed oil declined.
Meat prices are falling
After a record high in June, the meat price index weakened by 2.8 percent, marking the first decline this year. Global poultry prices fell due to lower export quotations from Brazil amid abundant supply.
Pork prices have decreased due to an oversupply of products in the EU and weak demand in the global market. Beef prices have also fallen because of weakened imports in Asian countries. The cost of lamb has reached a new record level as Oceania’s export potential remains limited.
Dairy products
The price index for dairy products decreased by 0.7 percent. Whole and skimmed dry milk powders, as well as butter, became cheaper.
Cheese prices rose for the first time in a year: the seasonal reduction in milk production in the EU outweighed the ongoing decline in quotations in Oceania and the pressure from abundant export supplies and increased competition from the US.
Sharp rise in sugar prices
The most notable increase was shown by sugar: its index rose by 5.6 percent, completely offsetting the June decline. The cause was concerns about the impact of prolonged heat and drought on the harvest in the EU, as well as the possible consequences of the El Niño weather phenomenon for production in key Asian countries.
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