Global food prices posted their biggest gain in 18 months in September on the back of surging sugar prices, the United Nations food agency reported on Friday.
The price index, compiled by the U.N. Food and Agriculture Organization (FAO) to track the most globally traded food commodities, rose to 124.4 points in last month from 120.7 in August, the highest level since July 2023 and up 2.1% on the year.
The sugar index soared 10.4% month-over-month, driven by worsening crop prospects in Brazil and concerns that India’s decision to lift restrictions on sugarcane use for ethanol production may affect the country’s export availabilities, FAO said.
The cereal price index increased 3%, led by higher wheat and maize export prices, while rice prices declined 0.7%.
Vegetable oil prices gained 4.6% on the month, with higher quotations registered across the board for palm, soy, sunflower and rapeseed oils.
Dairy prices rose 3.8% in September, with quotations up for whole milk powder, skim milk powder, butter and cheese, while meat prices edged up 0.4%.
In a separate report, the FAO marginally increased its forecast for global cereal production in 2024 to 2.853 billion tons from a previous 2.851 billion tons.
The increase reflected upward revisions to rice and wheat outputs that outweighed a minor reduction in global coarse grains production, FAO said.
World cereal utilization looked set to increase by 12.4 million tons in 2024/25 to 2.853 billion tons. By contrast, the agency cut its forecast for world cereal stocks at the close of the 2025 season by 1.7 million tons to 888.1 million.
