Enviro News Asia, Rome — The benchmark index tracking global food commodity prices edged higher in July, driven by rising international prices for cereals, vegetable oils and sugar amid weather-related concerns, energy market movements and geopolitical tensions, according to the Food and Agriculture Organization of the United Nations (FAO).
The FAO Food Price Index averaged 131.1 points in July 2026, increasing 0.6 percent from June and 1.0 percent from July 2025. The index measures monthly changes in international prices of a basket of globally traded food commodities.
The FAO Cereal Price Index rose 3.4 percent from June, bringing it 6.9 percent above its level a year earlier. Wheat prices increased 5.8 percent amid concerns over continued disruptions to Black Sea export flows and the potential impact of recent heatwaves on crop yields in several major producing countries.
Global maize prices also increased by 3.6 percent, supported by concerns over hot and dry conditions in parts of the United States and spillover effects from firmer energy markets amid heightened geopolitical tensions. Rice prices remained broadly stable during the month.
The FAO Vegetable Oil Price Index increased 2.0 percent from June, reaching its highest level since June 2022. Palm oil prices rose due to strong demand from Indonesia’s biodiesel sector and higher crude oil prices. Soy oil prices also increased amid sustained feedstock demand in the United States and stronger global import demand.
In contrast, sunflower and rapeseed oil prices declined during July.
The FAO Meat Price Index fell 2.8 percent from its record high in June, marking its first monthly decline of the year. Poultry prices declined largely because of lower quotations in Brazil amid ample export supplies, while pig meat prices weakened due to abundant supplies in the European Union and subdued global demand.
Bovine meat prices also eased as import demand from Asia weakened, while ovine meat prices reached a new record high due to persistently tight exportable supplies in Oceania.
The FAO Dairy Price Index declined 0.7 percent in July, with prices for whole and skim milk powders and butter falling. Cheese prices, however, increased for the first time in a year as tighter seasonal milk supplies in the European Union outweighed price declines in Oceania and strong export competition from the United States.
Sugar prices recorded one of the strongest increases among the commodities tracked by FAO. The FAO Sugar Price Index rose 5.6 percent in July, reversing the decline recorded in June.
The increase was mainly driven by concerns that persistent hot and dry weather could reduce sugarcane and other crop yields in the European Union, while El Niño-related weather conditions raised concerns over production prospects in key Asian producing countries.
Expectations of stronger ethanol demand in Brazil following a temporary increase in the mandatory ethanol blend in gasoline also supported sugar prices. However, improving harvesting conditions in Brazil’s Center-South region limited the overall increase.
The latest data highlight the continued sensitivity of global food commodity markets to extreme weather, energy prices, geopolitical developments and changing production conditions in major agricultural regions. (*)
