© FAO Workers load sacks of grain onto trucks at a market in Rwanda. Global food prices rose in August amid heat and conflict Economic development
Average world food prices increased last month. The main factors behind the growth of the Food Price Index were unfavorable weather conditions, the conflict in the Middle East and export disruptions in the Black Sea region. This was reported today from the Food and Agriculture Organization of the United Nations (FAO).
In August 2026, the FAO Food Price Index average was 1.9 percent higher than the revised July figure and 2.5 percent higher than the same period last year.
Cereal export disruptions
Average grain prices vs. increased by 2.2 percent from July. Owing to prolonged disruptions in exports from the Black Sea region, lower production forecasts in most parts of Europe, which experienced hot and dry weather, and a weaker dollar, world wheat prices rose 2.6 percent, 15 percent higher than last year.
Global corn prices rose 2.5 percent from July, driven by, among other things, growing concerns about crop prospects in some parts of the United States, worsening production forecasts in the European Union and disruptions to exports from Ukraine.
Plant oils
The average price for vegetable oils increased by 1.1 percent compared to July. This is due to rising global prices for palm and soybean oils, driven by high global demand and concerns about the effects of El Niño in Southeast Asia.
Meat and dairy products
The average Meat Price Index increased by 1 percent over the month. The increase affected prices for poultry, pork and lamb. The increase in pork prices was mainly due to the hot weather prevailing in the European Union, which negatively affected the rate of weight gain of animals. At the same time, international prices for beef decreased.
Compared with the July level, prices for dairy products rose by 2.3 percent. The recorded increase is largely due to reduced milk supply in the European Union amid hot and dry weather.
Sugar Prices
The Sugar Price Index rose 11.9 percent in August. The sharp jump is driven by expectations of lower sugar beet yields in the European Union due to unfavorable weather conditions, concerns about the impact of El Niño on crops in key producing countries in Asia, lower sugar production in Brazil and India’s decision to remove tariffs on imports of raw sugar.
Cereal production forecasts
Global production of corn, wheat and rice may be below previously recorded levels. Global cereal production in 2026 is expected to reach 2,980 million tonnes, down 2 percent from 2025, according to a new FAO update also released on Friday. The resulting harvest would be the second largest on record.
Despite the upward revision to 810.7 million tons, wheat production could be 3.8 percent below 2025 levels. Due to falling profitability and adverse weather conditions, driven primarily by the effects of El Niño, global rice production could fall to 553.1 million tons in the 2026-2027 season, down 1.9 percent from the previous season’s record. 947.2 million tonnes, slightly higher than at the start of the season and partly due to increased wheat stocks in the Russian Federation and Ukraine due to limited availability of export routes.
FAO also forecasts that global grain trade in the 2026-2027 season is likely to decline to 509.3 million tonnes, below previously recorded records levels.