World food prices rose in August to their highest level since November 2022 as weather, conflict and trade disruptions increased concerns about supplies.

The United Nations Food and Agriculture Organization’s Food Price Index averaged 133.3 points during the month. That was 1.9 per cent higher than the revised July reading and 2.5 per cent above August 2025.

Prices increased across all five commodity groups included in the index: cereals, vegetable oils, meat, dairy and sugar.

Despite reaching the highest level in nearly four years, the overall index remained 16.8 per cent below the record set in March 2022 following Russia’s invasion of Ukraine.

Sugar recorded the largest monthly increase. The FAO Sugar Price Index climbed 11.9 per cent to its highest level since June 2025.

Hot and dry weather reduced sugar beet yield expectations in the European Union, while weather connected to El Niño created additional uncertainty around production in Asia.

Lower output in Brazil’s major sugar-producing region and India’s decision to allow duty-free raw sugar imports also contributed to the increase.

The Cereal Price Index rose 2.2 per cent to its highest point since May 2024.

International wheat prices increased 2.6 per cent during August and were 15 per cent above their level one year earlier. Black Sea shipping disruptions, weaker production prospects in parts of Europe and strong demand contributed to the increase.

Maize prices also rose 2.5 per cent as hot and dry weather affected crop prospects in the United States and European Union.

Barley prices increased 2.6 per cent, while sorghum rose 3.9 per cent. Rice prices recorded a smaller monthly increase of 0.5 per cent.

The movement in wheat and barley markets is particularly relevant to Alberta grain producers. Higher international prices can support crop values, although increased fuel, fertilizer and transportation costs may offset some of the benefit.

The FAO lowered its forecast for global cereal production in 2026 by 3.4 million tonnes to 2.98 billion tonnes. That would be two per cent below 2025 production, although it would remain the second-largest crop on record.

Projected world cereal stocks at the end of the 2026-27 marketing season were also revised downward to 947.2 million tonnes.

Vegetable oil prices increased for a third consecutive month, reaching their highest level since June 2022. Palm and soybean oil prices rose while sunflower and rapeseed oil prices declined slightly.

The Meat Price Index gained one per cent as higher poultry, pork and sheep meat prices outweighed a decline in beef prices.

International pork prices were affected by hot weather in the European Union, which slowed animal growth and reduced the number of market-ready hogs. Beef prices declined as exporters competed for markets outside China and South Korea.

Dairy prices increased 2.3 per cent, marking their first monthly gain since April. Milk powder and cheese prices rose while butter remained relatively stable.

The FAO index measures international commodity prices rather than prices paid at Canadian grocery stores. Retail food costs are also affected by the Canadian dollar, transportation, processing, labour and competition among retailers.

Changes in international commodity markets can take time to reach consumers. The latest figures nevertheless indicate that supply concerns are returning after global food prices had fallen substantially from their 2022 peak.