FAO: Global food prices rise for third straight month amid Middle East tensions

According to the latest FAO report, the Food Price Index averaged 130.7 points in April, up 1.6% from March and 2% higher compared to the same period last year.

Cereal prices rose moderately, with wheat prices increasing due to drought concerns in parts of the United States and expectations of lower rainfall in Australia. Analysts also pointed to concerns over reduced wheat planting next year as farmers shift toward crops requiring less fertilizer amid rising costs linked to elevated energy prices and disruptions around the Strait of Hormuz.

“Despite the disruptions linked to the crisis in the Strait of Hormuz, global agrifood systems continue to show resilience. Cereal prices have increased only moderately so far, supported by relatively strong stocks and adequate supplies from previous seasons. Vegetable oils, however, are experiencing stronger price increases, driven largely by higher oil prices, which are increasing demand for biofuels and putting additional pressure on vegetable oil markets,” said FAO Chief Economist Máximo Torero.

Vegetable oil prices recorded one of the sharpest increases, climbing 5.9% to their highest level since July 2022. FAO said higher crude oil prices boosted demand for biofuels, increasing pressure on palm, soy, sunflower and rapeseed oil markets.

Meanwhile, meat prices reached a record high in April, supported by stronger beef and pork prices, while dairy and sugar prices declined due to improved supply prospects in major producing countries.

Earlier, Qazinform News Agency reported that global energy prices could rise by 24% in 2026, while overall commodity prices are projected to increase by about 16%, according to the World Bank.