By Mary Izuaka

 

World food commodity prices increased in September, due mostly to transportation disruptions and weather concerns that constrained availability, as well as to higher quotations for crop-based commodity groups, the Food and Agriculture Organisation of the United Nations has said.

According to the Food Price Index report published on Friday on the FAO webpage, average prices were 136.0 points in September 2026, up 2.0 points (1.5 per cent) from its revised August level.

The report tracks international prices of the most commonly traded food commodities.

The FAO said price indices for crop-based commodity groups (cereals, vegetable oils, and sugar) all rose from the previous month, while the meat price index fell and the dairy price index remained stable.

Compared to a year earlier, it said the food price indices stood 7.4 points (5.8 per cent) higher but remained 24.3 points (15.1 per cent) below its peak reached in March 2022.

In the report, the FAO Cereal Price Index averaged 122.8 points in September, up 6.0 points (5.1 per cent) from August and 18.0 points (17.2 per cent) above its September 2025 value.

It said world wheat prices increased by 6.3 per cent from August, reaching their highest level since August 2023, although daily quotations eased towards the end of the month.

“The rise was largely associated with logistical constraints in the Black Sea region, which prompted importers to shift towards alternative origins. Dry weather conditions in parts of North America ahead of winter wheat planting also contributed to the increase.

“Global maize prices rose by 5.6 per cent month-on-month to their highest level in more than three years, supported by a tightening supply outlook following lower-than-anticipated yields in the United States of America and less export availability in Brazil,” the report said.

It explained that trade disruptions in the Black Sea region reduced maize export availability, while uncertainty over shipping through the Strait of Hormuz kept concerns about fuel, fertiliser and freight costs elevated, providing additional support to commodity prices, particularly for those used as biofuel feedstocks, such as maize.

“World sorghum and barley prices also increased in September by 13.7 per cent and 3.9 per cent, respectively, in line with the broader trend across feed grain markets, as well as expectations of increased Chinese purchases of sorghum following trade discussions between China and the United States of America. The FAO All Rice Price Index increased by 1.4 per cent in September 2026, as Indica quotations rose amid weather concerns and seasonally tighter supplies,” it said.

The report said the FAO Vegetable Oil Price Index averaged 198.6 points in September, up 1.8 points (0.9 per cent) from August and 18.3 per cent above its level a year earlier.

It noted that the increase was driven mainly by higher world palm oil prices, more than offsetting a decline in sunflower oil quotations.

“Soy and rapeseed oil prices remained broadly stable during the month. International palm oil prices rose for the fourth consecutive month, supported by strong global import demand and concerns over the impact of dry weather on production prospects in Southeast Asia.”

By contrast, it said sunflower oil prices declined for the third successive month, reflecting expectations of ample supplies from the Black Sea region, although ongoing logistical disruptions and constrained export capacity through alternative routes contained the decline.

“World soy oil prices were little changed, remaining well above their year-earlier levels, supported by robust demand from the biofuel sector. Rapeseed oil prices also remained largely unchanged,” it added.

The FAO Meat Price Index averaged 127.9 points in September, down 1.5 points (1.1 per cent) from its revised August value and in line with its level a year ago.

It said the decline reflected lower poultry and pig meat quotations, while bovine and ovine meat prices remained broadly stable, noting that international poultry meat quotations declined amid ample export supplies from Brazil and weaker import demand from the European Union following the entry into force on 3 September of the antimicrobial-related import requirements.

It said the effect was most evident for higher-value products and was compounded by the front-loading of imports ahead of the implementation of the new rules.

“Pig meat prices also declined amid abundant supplies in major exporting countries. In the European Union, animal growth rates returned to normal levels following the decline during the summer heatwaves, supporting increased supplies and weighing on prices.”

For bovine meat, it said export prices in Australia declined amid intensified global competition, while quotations increased in Brazil, supported by stronger demand from the United States of America after the temporary expansion of the tariff-rate quota for lean beef trimmings on 1 September, which reduced duties on additional import volumes.

“Ovine meat prices remained on average unchanged, as support to export prices in Oceania from firm global import demand was tempered by lower quotations in New Zealand, largely reflecting currency movements,” the report said.

According to the report, the FAO Dairy Price Index averaged 119.1 points in September, down by 0.2 points (0.1 per cent) from August.

It explained that the declines in cheese prices were almost offset by increases in milk powder quotations, while butter prices changed little.

‘The index remained 19.1 per cent below its level a year earlier. While skim milk powder quotations stood 33.1 per cent above their year-earlier level, cheese and butter prices were substantially lower.

“Milk powder prices rose across major origins, supported by sustained import demand, particularly from Asia, and limited availability for prompt delivery.

In Oceania, firm buying interest more than offset downward pressure from seasonally larger milk production.

“Cheese prices declined across the major exporting regions. The trend was driven mainly by developments in the European Union, where weaker buying interest and strong competition from abundant export supplies from the United States of America weighed on prices. Increasing seasonal export availability in Oceania added further downward pressure,” it said.

By contrast, the report said butter prices were on average little changed, as lower export quotations in Oceania were largely offset by firmer prices in Europe due to limited milkfat availability following a hot and dry summer.

In the report, the FAO Sugar Price Index averaged 114.0 points in September, up 6.5 points (6.1 per cent) from August and 14.6 points (14.7 per cent) from a year ago, marking its third consecutive monthly increase and reaching its highest level since April 2025.

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The increase was mainly driven by prospects of tighter global sugar supplies in the 2026/27 season.

“In the European Union, a decline in planted area and adverse weather conditions during the growing season are expected to result in a smaller sugarbeet output.

“Forecasts of lower sugar production in Thailand and concerns over crop prospects in India, amid below-normal rainfall and strengthening El Niño conditions, contributed to the tighter global supply outlook,” it said

In addition, FAO said heavy rains disrupting harvest progress in Brazil’s key Centre-South growing region exerted further upward pressure on international sugar prices.

The FAO Chief Economist Maximo Torero said: “We are seeing a persistent and increasingly broad-based build-up in global commodity prices, as disruptions in the Strait of Hormuz and the Black Sea combine with climate shocks, putting pressure on energy, transport and key food commodities.

“If sustained, these pressures will soon pass through to consumer food prices, especially in food- and energy-import-dependent countries.”