Home News Global Food Prices Rise in August Due to Weather and Trade Risks

Global Food Prices Increase in August Due to Weather and Trade Issues

Sep 6, 2026
85 min
26
Sep 6, 2026 09:30
Global food prices rise 1.9% in August with sugar, wheat and maize all higher

## August Sees Rise in Food Prices

In August 2026, global food prices rose by 1.9%, driven by significant increases in sugar, wheat, and maize prices. The Food and Agriculture Organization (FAO) reported that the FAO Food Price Index reached 133.3 points, marking a 2.5% increase from the previous year.

## Sugar Leads the Surge

Sugar prices experienced the most substantial rise, jumping 11.9% from July. This increase was attributed to adverse weather conditions affecting sugar beet yields in the EU and production challenges in Asia due to El Niño. Additionally, reduced output in Brazil and India's decision to allow duty-free sugar imports contributed to the price hike.

## Wheat and Maize Prices Climb

Wheat prices increased by 2.6% in August, influenced by disruptions in Black Sea exports and unfavorable weather in Europe. Maize prices rose by 2.5%, driven by concerns over US crop yields and European production issues. The closure of the Strait of Hormuz also added pressure on maize prices.

## Dairy and Meat Prices Also Up

The FAO Dairy Price Index saw a 2.3% increase, the first in four months, due to tightening milk supplies and hot weather in Europe. Meat prices rose by 1%, with poultry, pig, and ovine meat seeing higher quotations, although bovine meat prices fell due to increased competition among exporters.

## Outlook on Global Cereal Production

FAO forecasts a decline in global cereal production to 2.98 billion tonnes in 2026, a 2% drop from the previous year. Despite this, it remains the second-largest harvest on record. Wheat production is expected to decrease by 3.8%, while maize output is projected at 1.309 billion tonnes. Rice production is anticipated to fall by 1.9% in the 2026/27 season.

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