FAO Food Price Index Rises for Third Month on Supply Shocks

The United Nations Food and Agriculture Organization Food and Agriculture Organization of the United Nations said on Wednesday that global food prices rose for a third consecutive month in April, driven by higher energy costs and supply chain disruptions linked to conflict in the Middle East.

The FAO Food Price Index averaged 130.7 points in April, marking a 1.6% increase from the revised March level and a 2.0% rise compared with a year earlier, according to data released by the agency.

Within the index, the cereal sub-index rose 0.8% month-on-month and 0.4% year-on-year, reflecting firmer grain market conditions.

The FAO said its outlook for wheat markets has been affected by shifting agricultural decisions amid regional instability. According to the agency's analysis, conflict in the Middle East has prompted some farmers to switch to crops requiring lower fertilizer inputs, leading to a projected reduction in wheat planting areas in 2026.

As a result, FAO slightly lowered its global wheat production forecast for 2026 and now expects output to decline by around 2% compared with the previous year.

In a separate monthly market monitoring report released the same day, the FAO highlighted continued disruptions in fertilizer supply caused by bottlenecks in the Strait of Hormuz. The agency said these constraints have pushed up prices for urea and phosphate fertilizers, further reducing affordability and increasing near-term risks for agricultural production worldwide.