World food prices at highest since 2022 as supply risks mount, FAO says

World food prices climbed in August to their highest point since late 2022, according to the United Nations Food and Agriculture Organization, which published the figures on Friday. Harsh weather and fighting around the Black Sea have deepened worries about supplies of staple foods. The FAO Food Price Index averaged 133.3 points last month, up from a revised 130.8 in July, though still nearly 17% below its March 2022 peak.

Hot, dry weather in Europe, a possible strong El Nino, and trade turmoil tied to the Ukraine and Iran wars have unsettled farm markets. Cereal prices gained 2.2% from July to their loftiest level since May 2024, while vegetable oils inched up 0.6%. Sugar jumped 11.9% to a level not seen since June 2025, as lower output in Brazil's center-south region added to weather worries.

Separately, the FAO lowered its 2026 global cereal production forecast by 3.4 million metric tons to 2.980 billion tons, which is 2.0% below 2025 and the largest annual fall since 2018. Even so, projected output would remain the second-highest on record. Global cereal stock estimates for the end of 2026/2027 were cut 1.1% to 947.2 million tons, barely above the prior season.