Global food commodity prices edged higher in July as extreme weather, concerns over crop production and rising energy costs drove increases in the prices of cereals, vegetable oils and sugar, according to the latest data released Friday by the United Nations Food and Agriculture Organization (FAO).

The FAO Food Price Index, which tracks monthly changes in the international prices of a basket of globally traded food commodities, averaged 131.1 points in July 2026. The index rose 0.6 percent compared with June and was 1.0 percent higher than its level in July 2025.

Cereals Record Strongest Monthly Increase

The FAO Cereal Price Index climbed 3.4 percent from June, reversing the previous month's decline and standing 6.9 percent above its level a year earlier.

Global wheat prices surged 5.8 percent amid growing concerns over continued disruptions to Black Sea grain exports and the impact of recent heatwaves on harvest prospects in several major producing countries.

World maize prices also rose, increasing 3.6 percent, supported by hot and dry weather affecting parts of the United States and higher energy prices linked to ongoing geopolitical tensions.

Meanwhile, international rice prices remained broadly stable during the month.

Vegetable Oil Prices Reach Highest Level Since 2022

The FAO Vegetable Oil Price Index rose 2.0 percent from June, reaching its highest level since June 2022.

Palm oil prices strengthened on the back of robust demand from Indonesia's biodiesel industry and higher crude oil prices. Soybean oil quotations also increased due to sustained demand for biofuel feedstocks in the United States and stronger global import demand.

In contrast, sunflower and rapeseed oil prices declined during the month.

Meat Prices Ease from Record Highs

The FAO Meat Price Index fell 2.8 percent in July after reaching a record high in June, marking its first monthly decline of the year.

International poultry prices dropped, largely reflecting ample export supplies from Brazil, while pig meat prices weakened amid abundant supplies in the European Union and subdued global demand.

Beef prices also declined as import demand from Asia softened. However, sheep meat prices climbed to a new record high, supported by limited export supplies from Oceania.

Dairy Prices Continue to Decline

The FAO Dairy Price Index decreased 0.7 percent in July.

Prices for whole milk powder, skim milk powder and butter all fell during the month. Cheese prices, however, posted their first increase in a year as tighter seasonal milk supplies in the European Union outweighed continued price declines in Oceania and strong export competition from the United States.

Sugar Prices Rebound

The FAO Sugar Price Index rose 5.6 percent, reversing June's decline.

The increase was driven primarily by concerns that prolonged hot and dry weather could reduce sugar production in the European Union, as well as fears that El Niño-related weather conditions may affect harvests in key Asian producing countries.

Additional support came from expectations of stronger ethanol demand in Brazil following a temporary increase in the country's mandatory ethanol blend in gasoline. However, improved harvesting conditions in Brazil's main Center-South growing region helped limit further price gains.

Weather and Geopolitical Risks Continue to Shape Markets

FAO said that weather-related risks, geopolitical tensions affecting energy markets and uncertainty surrounding agricultural production continue to influence global food prices.

While overall price increases in July were modest, the organization noted that climate extremes, supply chain disruptions and energy market volatility remain important factors that could shape food commodity markets in the coming months. (ILKHA)