The Food Price Index of the United Nations Food and Agriculture Organization (FAO) rose in August 2026.
Modern.az reports that FAO has released information about this.
It was stated that the index, which tracks international prices of global food commodities, was 133.3 points in August. This is 2.5 points or 1.9% more than the recalculated figure for July. Although the index is 3.3 points or 2.5% higher compared to the same month last year, it is still 26.9 points or 16.8% lower than the historical maximum recorded in March 2022. At the same time, prices of global food commodities reached their highest level in August since the end of 2022.
In August, prices rose across all major food groups tracked by FAO. The sharpest increase was recorded in sugar.
Wheat up 2.6%, corn up 2.5%
The FAO Cereal Price Index was 116.3 points in August, up 2.2% month-on-month and reaching its highest level since May 2024.
In August, international prices of all major cereal types increased. This was influenced by strong demand, weather risks related to yields in key producing regions, and uncertainty regarding export flows from the Black Sea.
The price of wheat on the world market increased by 2.6% in one month and by 15% year-on-year. FAO attributes this to continued disruptions in Black Sea export logistics, weakening production expectations due to hot and dry weather in some parts of Europe, and the depreciation of the US dollar.
The international price of corn increased by 2.5% compared to July. Concerns about yields in some parts of the US "Corn Belt" region, prolonged hot and dry weather in the European Union, strong demand from the ethanol and feed sectors, as well as disruptions in exports from Ukraine supported prices.
Concerns about the supply of necessary resources for production after the closure of the Strait of Hormuz also provided additional support to corn prices. Sorghum prices rose by 3.9%, and barley prices by 2.6%. The FAO rice price index also increased by 0.5% in August.
Vegetable oils reach highest level since 2022
The FAO Vegetable Oil Price Index was 196.9 points in August. The index increased by 0.6% compared to July. This was the third consecutive monthly increase, bringing the indicator to its highest level since June 2022.
The increase was mainly due to rising prices of palm and soybean oils. A certain decrease was recorded in the prices of sunflower and rapeseed oils.
The increase in palm oil prices was caused by strong global import demand and concerns about the possible impact of El Niño-related weather conditions on production in Southeast Asia.
Meat prices up 1%
The FAO Meat Price Index was 127.9 points in August, up 1% month-on-month. International prices of poultry, pork, and sheep meat increased, while beef prices decreased.
The increase in poultry prices is attributed to the recovery of Brazilian export prices amid strong global demand. High temperatures in the European Union slowed animal growth, reducing the supply of pigs ready for slaughter and causing pork prices to rise.
Beef prices, however, recorded the opposite dynamic. Brazil's almost full utilization of China's protective import quota for beef and the prospect of higher tariffs on additional supplies weakened exports. Australia also reached quota limits in China and South Korea.
Dairy products become more expensive after 4 months of decline
The FAO Dairy Price Index rose to 119.2 points in August. The monthly increase was 2.3%, and thus the index rose for the first time after a four-month decline. Nevertheless, the indicator is 21.7% lower than in the same month last year.
The price of skimmed milk powder increased by 3%, whole milk powder by 2.4%, and cheese by 2.7%.
Reduced milk supply in the European Union and hot and dry weather in several key producing regions had an upward effect on prices.
Sugar up 11.9% in one month
The sharpest increase was recorded in the sugar market. The FAO Sugar Price Index was 106.4 points in August. This means an increase of 11.3 points or 11.9% compared to July. The index thus reached its highest level since June 2025.
The main reason for the increase was concerns about a decrease in global sugar supply for the 2026/2027 season. Persistent hot and dry weather led to a downward revision of sugar beet yield forecasts in the European Union. Acreage in the region is also expected to decrease compared to previous seasons. El Niño-related weather conditions continue to negatively affect production prospects in key Asian producing countries.
Reduced production in Brazil's Center-South region, a major sugar-producing area, also increased concerns about global supply.
India's announcement that it would allow duty-free imports of raw sugar also had an additional impact on rising international sugar prices. (marja.az)
