The FAO price index rose in September, driven by sugar and cereals
FAO’s sugar price index rose 6.1% in September, marking its third consecutive monthly increase and highest level since April 2025, amid expectations of lower 2026-27 global supply. Cereal prices climbed 5.1%, vegetable oils 0.9%, while meat and dairy prices declined 1.1% and 0.1%, respectively.
Sugar saw the sharpest rise last month, with the FAO price index for this product increasing by 6.1 per cent. This figure has been rising for the third consecutive month and is at its highest level since April 2025. The main reason is the forecast reduction in global sugar supply during the 2026–27 marketing year. It is expected that a reduction in sown areas and adverse weather conditions in the European Union will lead to a decline in sugar beet production. In addition, sugar production is forecast to fall in Thailand, India and, possibly, Brazil – due to delays in the harvest in a key sugarcane-growing region.
The FAO Cereal Price Index rose by 5.1 per cent. This increase was mainly driven by logistical problems in the Black Sea region, which led importers to switch to alternative suppliers. Dry weather conditions in some parts of North America in the run-up to the winter wheat sowing season were a further factor driving up prices.
In September, the average value of the vegetable oil price index was 0.9 per cent higher than in August. Global prices for this commodity group were supported by a rise in the price of palm oil. By contrast, sunflower oil prices continued to fall for the third consecutive month against a backdrop of a forecast of abundant supply in the Black Sea region.
The average value of the FAO price index for meat fell by 1.1 per cent in September, whilst that for dairy products fell by 0.1 per cent.
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Source : Logos Press
