Published on: 2026-09-04
Source: United Nations – United Nations –
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September 4, 2026 Economic Development
Average global food prices increased last month. The main factors driving the rise of the Food Price Index were adverse weather conditions, the conflict in the Middle East, and export disruptions in the Black Sea region. This was reported today by the Food and Agriculture Organization of the United Nations (FAO).
In August 2026, the average value of the FAO Food Price Index was 1.9 percent higher than the revised July figure and 2.5 percent higher than the corresponding figure for the same period last year.
Disruptions in grain exports
The average grain price quotations increased by 2.2 percent compared to July. Due to prolonged export disruptions from the Black Sea region, reduced production volume forecasts in most European regions experiencing hot and dry weather, and the weakening of the dollar, global wheat prices rose by 2.6 percent, reaching 15 percent above last year’s level.
Compared to July, global corn prices increased by 2.5 percent, driven, among other factors, by growing concerns about crop prospects in some US regions, worsening production forecasts in the European Union, and export disruptions from Ukraine.
Vegetable oils
The average price index for vegetable oils increased by 1.1 percent compared to July. This is due to the rise in global prices for palm and soybean oil, caused by high global demand and concerns about the effects of El Niño in Southeast Asian countries.
Meat and dairy products
The average value of the Meat Price Index for the month increased by 1 percent. The increase affected prices for poultry meat, pork, and lamb. The rise in pork prices was mainly caused by the hot weather established in the European Union, which negatively affected the animals’ weight gain rates. Meanwhile, international prices for beef decreased.
Compared to the July level, the price index for dairy products increased by 2.3 percent. The recorded growth is largely due to the reduction in milk supply in the European Union amidst hot and dry weather.
Sugar prices
In August, the Sugar Price Index value increased by 11.9 percent. This sharp surge is due to expectations of reduced sugar beet yields in the European Union caused by adverse weather conditions, concerns about the effects of El Niño on harvests in key producing countries in Asia, reduced sugar production in Brazil, and India’s decision to abolish tariffs on raw sugar imports.
Grain Production Forecasts
The production volume of corn, wheat, and rice worldwide may be lower than previously recorded record levels. According to a new FAO summary, also published on Friday, global grain production in 2026 is expected to reach 2,980 million tons, which is 2 percent lower than in 2025. At the same time, the harvest will become the second largest in the entire history of observations.
Despite the upward revision to 810.7 million tons, wheat production may be 3.8 percent below the 2025 level. Due to declining profitability and adverse weather conditions, mainly caused by the effects of El Niño, global rice production in the 2026–2027 season may decrease to 553.1 million tons, which is 1.9 percent below the record level of the previous season.
The projected volume of global grain stocks at the end of the 2027 agricultural season will be 947.2 million tons, which is slightly above the level at the beginning of the season and partly explained by increased wheat stocks in the Russian Federation and Ukraine due to limited availability of export routes.
FAO also forecasts that the volume of global grain trade in the 2026–2027 season is likely to decrease to 509.3 million tons, which is below the previously recorded record levels.
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