World Food Prices Remain Close to 2023 Highs

The FAO Food Price Index edged down 0.2% to 130.8 points in May 2026 from an upwardly revised 131 points in April which was the highest reading since January 2023. Prices of cereals rose 2.6% reaching the highest level since June 2024, reflecting higher prices across all major cereals. World wheat prices rose for the fourth consecutive month, supported by smaller-than-expected harvests in major exporters, including the US, while higher fuel and fertilizer costs added further upward pressure globally. In addition, sugar prices soared 7.5% mainly driven by concerns over an anticipated tightening of global sugar supplies in the coming months. Meat costs edged up 0.1% with higher quotations for bovine and ovine meat. In contrast, dairy prices decreased 0.5% to reach the lowest level since January 2024 and vegetable oils cost tumbled 4.6% mainly driven by lower prices of palm and soy oils, which more than offset increases in rapeseed oil and sunflower oil prices.

The FAO Food Price Index rose 1.6% to 130.7 points in April 2026, marking a third consecutive monthly increase and reaching the highest since February 2023. Prices for vegetable oils jumped 5.9% to hit a fresh June-2022 high, driven by palm, soy, sunflower and rapeseed oils amid disruptions linked to the war with Iran. Prices of cereals rose 0.8% to its highest since February 2025, reflecting higher prices across major cereals, except sorghum and barley. Wheat went up 0.8% on drought concerns in parts of the US, expectations of lower rainfall in Australia, and prospects of reduced wheat plantings in 2026 due to elevated fertilizer and energy costs linked to disruptions around the Strait of Hormuz. Meat prices were up 1.2% to hit a record high. On the other hand, sugar declined 4.7%, amid expectations of ample global supplies in the current season and improved production prospects in China and Thailand. Dairy products decreased 1.1% driven by lower quotations for butter and cheese.

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.