World Food Prices Rise as Energy Weighs

2026-04-03 08:15 By Joana Taborda 1 min. read

The FAO Food Price Index increased for a 2nd straight month to 128.5 points in March 2026, the highest since September.

Prices across all commodity groups rose, reflecting not only underlying market fundamentals but also responses to higher energy prices linked to the conflict in the Middle East.

Vegetable oil prices jumped 5.1% to a fresh high since June 2022, driven by rising quotations across palm, soy, sunflower and rapeseed oils.

Sugar soared 7.2% mainly influenced by higher crude oil prices, raising expectations that Brazil, the world’s top sugar exporter, would rely more on sugarcane-based ethanol during the upcoming harvest.

Cost for cereals went up 1.5% to hit the highest level since April 2025, reflecting higher quotations for all major cereals except rice.

Also, dairy prices were up 1.2%, the first increase since July 2025, driven primarily by higher quotations for skim milk powder, butter, and whole milk powder.

Meat increased 1% mainly driven by higher pig meat prices.



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World Food Prices Rise as Energy Weighs
The FAO Food Price Index increased for a 2nd straight month to 128.5 points in March 2026, the highest since September. Prices across all commodity groups rose, reflecting not only underlying market fundamentals but also responses to higher energy prices linked to the conflict in the Middle East. Vegetable oil prices jumped 5.1% to a fresh high since June 2022, driven by rising quotations across palm, soy, sunflower and rapeseed oils. Sugar soared 7.2% mainly influenced by higher crude oil prices, raising expectations that Brazil, the world’s top sugar exporter, would rely more on sugarcane-based ethanol during the upcoming harvest. Cost for cereals went up 1.5% to hit the highest level since April 2025, reflecting higher quotations for all major cereals except rice. Also, dairy prices were up 1.2%, the first increase since July 2025, driven primarily by higher quotations for skim milk powder, butter, and whole milk powder. Meat increased 1% mainly driven by higher pig meat prices.
2026-04-03
Global Food Prices Edge Higher in February
The FAO Food Price Index increased to 125.3 index points in February 2026, the highest in four months, from an upwardly revised 124.2 in January. Prices of cereals rose 1.1% to the highest level in nine months, with wheat prices up 1.8%, underpinned by reports of frosts and heightened winterkill risks in parts of Europe and the US. Logistical disruptions in Russia and continuing tensions in the Black Sea region also contributed to the increase. Meat cost increased 0.8%, largely driven by higher world bovine and ovine meat prices. Vegetable oil prices jumped 3.3% to hit the highest since June 2022, driven by palm, soy and rapeseed oils. On the other hand, sugar cost tumbled 4.1% to the lowest level since October 2020 amid expectations of ample global supplies in the current season. Dairy prices were down 1.2% to the lowest level since January 2024, amid a continued fall in cheese prices, particularly in the EU.
2026-03-06
World Food Prices Fall for 5th Month
The FAO Food Price Index slipped 0.4% to 123.9 points in January 2026, marking a fifth consecutive monthly decline and a fresh low level since August 2024. Sugar prices declined 1%, driven by expectations of increased global sugar supplies in the current season, largely underpinned by a significant production rebound anticipated in India and favourable prospects in Thailand. Also, dairy cost tumbled 5%, the seventh consecutive monthly decline, driven largely by lower world cheese and butter prices. Meat declined 0.4%, the lowest since May 2025, mainly reflecting lower pig meat prices, while quotations for bovine and ovine meats remained broadly stable. In contrast, cereal costs edged up 0.2%, reaching the highest since May 2025. Barley prices increased modestly and rice was up 1.8%, reflecting firmed demand while wheat prices declined 0.4%. Oil prices also jumped 2.1%, amid higher world prices of palm, soy and sunflower oils, which more than offset lower rapeseed oil quotations.
2026-02-06