World Food Prices Reach Highest Since 2022 as Sugar and Grain Costs Jump

World food commodity prices climbed again in September, pushing the FAO Food Price Index to 136.0 points, its highest level since late 2022 as weather risks and transport disruptions lifted prices across major crop markets.

The index rose 1.5 percent from August and 5.8 percent from a year earlier. FAO said the increase was driven mainly by crop based commodities while meat prices declined and dairy was broadly stable.

Cereals recorded one of the sharpest moves. The FAO Cereal Price Index rose 5.1 percent month on month, with international wheat prices up 6.3 percent and maize prices up 5.6 percent as Black Sea logistics, dry weather and lower yield expectations tightened availability.

Sugar prices rose even faster, with the FAO Sugar Price Index up 6.1 percent. FAO pointed to production concerns in Thailand and India, heavy rain in Brazil's Centre South and a smaller European Union sugar beet area.

Vegetable oil prices increased 0.9 percent on stronger palm oil demand and concerns over dry weather in Southeast Asia. Meat prices fell 1.1 percent, while the dairy index edged down 0.1 percent.

FAO now forecasts global cereal production at 2.979 billion tonnes in 2026, down 2.1 percent from 2025 but still the second largest harvest on record. Wheat production was revised higher while coarse grain expectations were cut.

World cereal trade is forecast to decline 3.5 percent from the record 2025 to 2026 level to 505.8 million tonnes, with constrained Black Sea shipping expected to weigh on wheat and maize exports.

The combination of higher benchmark prices and weaker trade volumes matters beyond commodity exchanges. Sustained increases in grains, sugar, freight and energy can move through processing and retail supply chains, particularly in countries that depend heavily on imported food and fuel.