Raw material prices rise amid heat and tensions

International food prices edged up in July 2026. The FAO Food Price Index averaged 131.1 points. This was 0.6 percent higher than one month earlier. Compared with July 2025, the index rose 1.0 percent. Higher quotations for cereals, vegetable oils, and sugar drove the increase. Lower meat and dairy prices limited the overall rise.

Concerns over wheat and corn

The FAO Cereal Price Index rose 3.4 percent. It was 6.9 percent higher than one year earlier. International wheat prices increased 5.8 percent. The market remains concerned about continued disruptions to Black Sea exports. Recent heatwaves may also affect harvests in key producing countries.

Global corn prices increased 3.6 percent. Hot and dry weather in parts of the United States contributed to the rise. Higher energy prices and geopolitical tensions also supported prices. International rice prices remained broadly stable in July.

Vegetable oil reaches highest level since 2022

The Vegetable Oil Price Index rose 2.0 percent. This brought the index to its highest level since June 2022. Palm oil prices increased amid strong demand from Indonesia’s biodiesel sector. Higher crude oil prices also contributed. Soybean oil prices rose on continued demand in the United States. Competitive pricing also fueled stronger international import demand. Sunflower and rapeseed oil prices declined.

The Sugar Price Index rose 5.6 percent in July. This reversed the index’s decline in June. Heat and drought may affect crop yields in the European Union. Concerns also persist over weather conditions associated with El Niño. These conditions may affect production in key Asian countries.

Opposing trends in meat and dairy

The Meat Price Index fell 2.8 percent. The index had reached a record high in June. Ample Brazilian export supplies weighed on international poultry prices. Pork prices declined amid plentiful supplies in the European Union. Global demand also remained subdued. Beef prices fell due to weaker import demand from Asia. Ovine meat reached a record high amid tight supplies from Oceania.

Milk powder and butter prices declined in the dairy market. Cheese prices increased for the first time in a year. Seasonal milk supplies in the European Union were tighter. This outweighed the price declines in Oceania.

Fao.org