Strait of Hormuz Blockade Drives 'Global Food Prices' to Highest Level in 3 Years

Global Food Price Index Rises 1.6% to 130.7 Points in April
Highest Level Since July 2022
Vegetable Oils Up 5.9%, Meat Up 1.2%, Grains Up 0.8%

Last month, the global food price index reached its highest level in the past three years. The overall index was driven up by a surge in edible oil prices amid the blockade of the Strait of Hormuz due to the war between the United States and Iran.

According to the United Nations Food and Agriculture Organization (FAO) on May 9, 2026, the global food price index for April 2026 recorded 130.7 points, up 1.6% from the previous month's 128.6 points. Prices for grains, vegetable oils, and meat rose, while prices for dairy products and sugar declined.

The FAO compiles and publishes a food price index for five commodity groups (grains, vegetable oils, meat, dairy products, sugar) each month by monitoring international price trends (95 indicators) for 24 items.

The food price index has been on a rising trend for four consecutive months since February this year. Notably, it is the highest figure since February 2023.

Last month, the vegetable oil price index rose to 193.9 points, up 5.9% from the previous month's 183.1 points. Prices for palm oil, soybean oil, sunflower oil, and rapeseed oil all increased. International palm oil prices have risen for five consecutive months, driven by higher crude oil prices and policy support from major countries, which are expected to boost biofuel demand. Additionally, concerns over reduced production in Southeast Asia contributed to further upward pressure. International prices of soybean oil and rapeseed oil increased, reflecting stable biofuel production demand in the United States and the European Union (EU). Sunflower oil prices led the upward trend as supply disruptions in the Black Sea region continued; however, increased exports from Argentina partially eased the price surge.

The grain price index rose to 111.3 points, up 0.8% from 110.4 points in the previous month. Prices for major grains rose, except for sorghum and barley. International wheat prices increased by 0.8%, driven by drought in some parts of the U.S. and the likelihood of below-average rainfall in Australia. The blockade of the Strait of Hormuz also raised fertilizer prices, prompting farmers to switch to crops requiring less fertilizer, which is expected to reduce wheat acreage in 2026 and further increase prices. Corn prices rose by 0.7%, due to seasonal supply shortages in Brazil, drought in some parts of the U.S., increased ethanol demand from higher international oil prices, and heavier fertilizer cost burdens. The rice price index increased by 1.9%, reflecting higher production and distribution costs caused by soaring crude oil and petroleum product prices. However, sorghum prices fell by 4.0%, as import demand from China decreased and supply outlooks improved in major producing and exporting countries.

In April, the meat price index stood at 129.4 points, up 1.2% from 127.9 points in the previous month. All meat prices rose except for lamb, which maintained stable prices. Beef prices were strong due to limited slaughter-ready supply in Brazil and steady import demand centered on China. Pork prices were partially offset by ample supply in Brazil but rose overall due to seasonal demand increases in the EU. Poultry prices climbed, supported by strong buying interest in African markets, which outweighed reduced sales in the Near East due to logistics constraints, and also benefited from higher Brazilian prices. Lamb maintained a generally steady trend, as limited supply in Australia and decreased demand from China, New Zealand's main export destination, offset each other.

The dairy product price index fell to 119.6 points, down 1.1% from 120.9 points in the previous month. Butter and cheese prices declined due to abundant milk supply in the EU and Oceania and intensified competition in the international market. The sugar price index dropped by 4.7% to 88.5 points. The sugar index declined as global supply is expected to be sufficient and production forecasts for key Asian producers such as China and Thailand have been raised. Favorable weather conditions in major production areas in southern Brazil, where harvesting has begun, also contributed to the overall decline.

This content was produced with the assistance of AI translation services.