ROME, ITALY — The benchmark global food commodity index rose by nearly 2% in August, as all commodity groups recorded higher price indices than in the previous month, according to the latest report from the Food and Agriculture Organization (FAO) of the United Nations. 

The FAO Food Price Index (FPI) averaged 133.3 points in August, up 2.5 points from its revised July level. Compared to last year, the FFPI stood 3.3 points (2.5%) higher but remained 26.9 points (17%) below its peak reached in March 2022.

The Cereal Price Index rose to its highest level since May 2024, as it averaged 116.3 points in August, up 2.5 points (2.2%) from July. International cereal prices increased across all major grains, supported by robust demand, weather-related concerns over crop prospects in key producing regions, and continued uncertainty surrounding Black Sea export flows, the FAO said.

World wheat prices rose by 2.6% month on month, standing 15% above the year-earlier level, amid persistent disruptions to Black Sea export logistics, lower production prospects in parts of Europe following hot and dry weather, and a weaker US dollar, which enhanced the competitiveness of dollar-denominated export supplies, according to the report.

International maize prices increased by 2.5% from July, “underpinned by mounting concerns over yield prospects in parts of the US Corn Belt and deteriorating production prospects in the European Union due to prolonged heat and dryness, with additional support from strong demand from the ethanol and feed sectors and disruptions to Ukrainian export flows,” the FAO said. 

Concerns over input supplies following the closure of the Strait of Hormuz provided additional support to maize prices, the FAO noted. World sorghum and barley prices also increased in August, up by 3.9% and 2.6%, respectively, broadly reflecting firmer conditions across feed grain markets, while the All Rice Price Index increased by 0.5%.

The Vegetable Oil Price Index rose for the third consecutive month, increasing by 1.1% in August to 196.9 points, making its highest level since June 2022.

The rise reflected higher world palm and soy oil prices, which more than offset lower quotations for sunflower and rapeseed oils, the FAO said.

Soy oil prices of South American origin remained firm, supported by strong export demand, while quotations in the United States declined moderately amid uncertainty surrounding biofuel policies and their implications for domestic feedstock demand. Meanwhile, international sunflower and rapeseed oil prices dropped slightly, reflecting subdued import demand and expectations of ample supplies of both oils in the 2026-27 season. 

Other report highlights included:

• The Meat Price Index averaged 127.9 points in August, up 1.2 points (1%) from its revised July value and close to its level a year ago. The increase reflected higher poultry, pig and ovine meat prices, which were partly offset by lower bovine meat quotations
• The Dairy Price Index averaged 119.2 points in August, up 2.7 points (2.3%) from July, marking its first increase in four months, while it remained 22% below its level a year earlier. The increase was driven by higher milk powder and cheese prices, while butter quotations were broadly stable.

The Sugar Price Index averaged 106.4 points in August, up11.3 points (12%) from July and reaching its highest level since June 2025. The price increase mostly stemmed from growing concerns over the global sugar supply outlook in the 2026-27 season.

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Arvin Donley is editor of World Grain. He has been at Sosland Publishing Company since 2005, covering the grain, milling and feed industries. He is a 1989 graduate of the William Allen White School of Journalism and Mass Communications at the University of Kansas.

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