Global food commodity prices fell to a 3-year low in March, according to the UN FAO Food Price Index, driven by strong harvests and restored Black Sea grain shipments. Wheat prices dropped 18% year-on-year, while vegetable oil fell 22% after record palm output in Indonesia and Malaysia.
The easing comes after two years of volatility caused by conflict, weather extremes, and export bans. Ukraine’s grain corridor has moved 32 million tons since it was reinforced in late 2025, and Russia reported its second-largest wheat crop ever.
Still, the FAO warned that local food insecurity persists. Parts of East Africa and the Middle East face high inflation and currency devaluation, keeping bread and rice unaffordable for millions. El Niño’s impact was milder than feared, boosting corn and soy yields in the Americas. Analysts expect prices to stay stable through mid-2026 unless major droughts hit or shipping lanes are disrupted again.