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The FAO Food Price Index dropped for the fourth month in a row in August reaching its lowest level since June 2012. The index, which measures the monthly change in the international prices of a basket of food commodities, averaged 201.8 points in August 2013, nearly 4 points (1.9 percent) below its July value and 11 points (or 5.1 percent) less than in August 2012.
Last month's decline was mainly driven by continued falls in the international prices of cereals and oils. Dairy, meat and sugar prices rose slightly.
Steep decline in cereal prices
The FAO Cereal Price Index averaged 210.9 points in August, down 16.4 points (7.2 percent) from July and 49.4 points (or 19 percent) from August 2012.
The steep decline reflects expectations for a strong growth in world cereal production this year and, especially, a sharp recovery in maize supplies.
Oils, dairy and meat
The FAO Oils/Fats Price Index averaged 185.5 points in August, 5.7 points (or 3.0 percent) below the July value and the third consecutive monthly decline.
The FAO Dairy Price Index averaged 239.1 points in August, 2.8 points (1.2 percent) more than in July and 37 percent above its level in August last year. Prices increased last month for all the dairy products that make up the index, except butter, as export supplies remain limited in major trading countries.
The FAO Meat Price Index averaged 175.0 points in August, an increase of 2.2 points (1.3 percent).
Thursday September 5, 2013/ FAO.
http://www.fao.org
