Global food prices rose slightly in July, reaching their highest level in more than three years due to heightened concerns about key food export channels and bad weather in major global production regions. According to a report released by the Food and Agriculture Organization of the United Nations on Friday, the UN Food Commodity Price Index rose 0.6% month-on-month in July, with food, sugar and vegetable oil prices leading the way. The focus of the global food market has moved from the turmoil caused in the early days of the US-Iran war to weak harvests, trade uncertainty, and ongoing weather concerns. The escalating attacks between Russia and Ukraine have heightened market concerns about supply in the Black Sea, a key food-exporting region, and pushed wheat prices to their highest level in two years in June. Meanwhile, extreme heat has damaged crops, and Europe is facing one of the worst cuts in food production on record, while droughts in major US producing regions are also threatening corn and soybean production. The Iran conflict has disrupted fertilizer supplies and increased energy costs. Coupled with the unusually strong El Niño phenomenon, it means that the global food market is facing a new round of production and trade risks.

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