This followed a sharp decline in the price of maize, wheat and certain oilseeds, reflecting ample supplies of these commodities globally.
The fall in global prices resulted in a drastic decline in the Food Price Index compiled by the United Nations’ Food and Agricultural Organization.
Based on the prices of a basket of internationally traded food commodities, the FAO Food Price Index averaged at 203.9 points in July, down 4.4 per cent (2.1 percentage point) from a revised value in June. This level was seen earlier in January, at 203.2 points.
“The lingering decline of food prices since March reflects much better expectations over supplies in the current and coming seasons, especially for cereals and oils, a situation expected to facilitate rebuilding of world stocks,” said FAO senior economist Concepción Calpe.
While grains, oilseeds and dairy products touched their lowest level since January, meat prices rose for a fifth month in July. The price of sugar remained firm, said a report from FAO.
“Livestock product markets have their own dynamics. In the case of meat, beef in particular, many exporting countries are in a herd rebuilding phase, limiting the availability for exports and sustaining prices,” said Calpe.
“As for dairy products, supplies available for trade appear to be abundant, which, along with a faltering import demand, has weighted on July’s quotations.”
The recent sharp slide in cereal prices reflected significant falls in the international prices of maize (down 9.2 per cent) and wheat (down 5.8 per cent), a reaction to excellent production prospects in many major producing countries and to the anticipation of abundant exportable supplies in the 2014-15
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