FAO food price index dips for third consecutive month
Rome: The FAO Food Price Index was down for a third consecutive month
in June, a decline mostly influenced by lower wheat, maize and palm oil
prices that reflected ample supplies and improved global production
prospects for these commodities.
According to the latest FAO Crop Prospects and Situation report, the
outlook for global production of cereals - a staple food in many
countries - improved further with upward revisions to coarse grains and
wheat supply forecasts for 2014-15.
FAO's latest forecast for world cereal production in 2014 now stands
at 2,498 million tonnes (including rice in milled terms), up 18 million
tonnes from the previous figure in June, although still 1 percent (23
million tonnes) below last year's record output. The recent upward
revision reflects improved production prospects for coarse grains and
wheat crops, particularly in the United States, the EU and India.
However, despite increased supplies and lower average prices, many
people in conflict and drought stricken areas need external assistance
for food, said the report which has a special focus on developing
countries and is published by FAO four times a year.
The Food Price Index, based on the prices of a basket of
internationally-traded food commodities, averaged 206.0 points in June
2014, down 3.8 points (1.8 percent) from May and nearly 6 points (2.8
percent) below the June 2013 level.
The index had risen to a ten-month high of 213 points in March 2014,
but fell in April, May and June, mainly as a result of lower cereal,
vegetable oil and dairy prices. Sugar prices also declined in June from
May, but remained up from last year, while in contrast, meat prices on
average increased from May.
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