World food prices fell for the fifth consecutive month in August, the United Nations Food and Agriculture Organisation said on Thursday, reaching their lowest point since 2010 pushed by stronger-than-expected grain and cereal crops. Grains and cereals are the biggest component in FAO’s World Food Price Index, which is based on a basket of 55 goods and 73 price quotations in five major food commodity groups. The overall index was 3.6 per cent lower than in July, at 196.6 points. It’s the lowest level for the general index since September 2010.
The grains and cereals part of the index dropped 1.5 per cent compared to July and is now 11.7 per cent lower than in 2013. Wheat and corn prices pushed the index lower, though rice prices actually inched higher based on rising demand, lower-than-expected releases from stockpiles in Thailand, and poor weather conditions in parts of Asia.
FAO said grain stockpiles worldwide are now approaching their highest levels in 15 years, pointing to more price weakness in this category.
Among the smaller components in the index, prices for oils and fats fell 8 per cent, dairy prices were 11.2 per cent lower, and sugar prices fell 5.7 per cent.
The only sector to see prices rise was for meats, which climbed 1.2 per cent on lower production levels in Australia and, for the second straight month, higher-than-usual demand from China and some other parts of Asia.
The next instalment of the FAO index will be released on October 9.
-With New Age input
