Global food prices rose in August to their highest level since late 2022 as extreme weather, geopolitical tensions and disruptions to international trade increased concerns over supplies of key agricultural commodities.

The United Nations Food and Agriculture Organization said its Food Price Index averaged 133.3 points in August, up from a revised 130.8 points in July.

The August reading was the highest since November 2022, although the index remained nearly 17 percent below its record level reached in March 2022.

FAO benchmarks covering cereals, vegetable oils, sugar, meat and dairy all increased during the month.

Extreme heat and drought in Europe have affected expectations for maize and sugar beet harvests as well as livestock production. Concerns over a potentially severe El Niño weather pattern have also added uncertainty around palm oil and sugar production in Asia.

FAO Chief Economist Maximo Torero said the August increase showed that a risk premium was returning to global food markets as climate shocks, geopolitical tensions and disruptions to trade logistics combined to tighten supply expectations.

Cereal prices increased 2.2 percent from July, reaching their highest level since May 2024.

The vegetable oil price index rose 0.6 percent to its highest level since June 2022.

Sugar recorded a much sharper increase, with the FAO benchmark jumping 11.9 percent to its highest level since June 2025.

Lower production in Brazil’s important centre-south region contributed to the rise in sugar prices, alongside weather-related concerns in Europe and Asia.

Agricultural markets are also facing disruption from ongoing conflicts.

Escalating attacks in the Black Sea have affected grain shipments from Russia and Ukraine, while the US-Iran conflict has added pressure to flows of fertiliser used in crop production.

In a separate assessment, FAO lowered its forecast for global cereal production in 2026 by 3.4 million tonnes compared with its July estimate.

The agency now expects global cereal production of 2.980 billion tonnes, representing a 2.0 percent decline from 2025 and the largest annual decrease since 2018.

Despite the decline, projected production would still be the second-highest on record.

FAO also revised its forecast for global cereal stocks at the end of the 2026-27 season down by 1.1 percent to 947.2 million tonnes.

The revised stock estimate would leave inventories only marginally above the previous season.

The agency said a lower estimate for coarse grain stocks outweighed an upward revision for wheat inventories, with Russian and Ukrainian wheat stocks expected to build as shipping disruptions constrain exports.

The latest figures underline growing uncertainty in global food markets as weather-related production risks and geopolitical disruptions increasingly affect expectations for supply, trade and prices.