The UN Food and Agriculture Organization said its food price index rose 0.6% MoM
in July to the highest level in more than three years, led by gains in cereals,
sugar and vegetable oils. Market focus has shifted to weak harvests, trade
uncertainty and extreme weather. Escalating attacks in the Russia‑Ukraine war
have intensified supply concerns for Black Sea exports, lifting wheat to a
two‑year high in June. Extreme heat has damaged European crops and US drought
threatens corn and soybean yields. Iran‑related fighting has disrupted
fertilizer supplies and pushed energy costs higher, and a strong El Nifio raises
further production and trade risks for global food markets.
