Loading...
See More

Global food prices fall

Sep 05 2013 13:57 Reuters


Related Articles

Drastic food price hikes hit consumers

Consumers turn to family for money

Trying to save could be making SA fat

Food prices up 49% in 5 years

More food price hikes loom

Let's not mince matters

Zambia's consumer inflation slows

 

Rome - Global food prices fell in August for the fourth month running, according to the United Nations' food agency.

It has again raised its 2013/14 forecast for grain production.

The Food and Agriculture Organisation (FAO) said on Thursday that cheaper food last month reflected declines in corn, wheat and edible oils prices.

Food prices surged during the summer of 2012 due to a major drought in the United States but prospects for a rebound in cereal supplies to record levels have reversed the price trend this year.

The FAO price index, which measures monthly price changes for a basket of cereals, oilseeds, dairy, meat and sugar, averaged 201.8 points in August, about 1.9% below July's level and the lowest since June 2012.

FAO said it expected global cereal production in 2013/14 to increase to a record 2.492 billion tonnes, up 0.5% from its July forecast and 7.7 percent higher than 2012 output.

FAO senior economist Abdolreza Abbassian told Reuters the prospect of bumper crops was now factored in by markets, so the rate of price declines may ease in coming months.

"We are almost at the bottom. Further declines are likely to be much less than those seen over the past few months," Abbassian said.

He said the FAO was unlikely to raise its crop forecasts much further but there was some room for downward adjustments.

The FAO said it expected a 10.5% expansion in coarse grain output to 1.285 billion tonnes and a 7.6% rise in wheat production to 710 million tonnes in 2013/14.

The Rome-based agency slightly raised its forecast for world cereal stocks at the close of seasons ending in 2014 to 569 million tonnes, about 13% higher than their opening levels and the highest since 2001/02.

FAO's price index hit a record peak of 238 points in February 2011, when high food prices helped drive the Arab Spring uprisings in the Middle East and North Africa.

In the summer of 2012 the index began surging to levels close to another peak seen in 2008, in which year there were riots, some deadly, in several poor countries.


Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

NEXT ON FIN24X

Doubt over EU jobs summit

2014-09-17 20:30

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
4 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

New forms of digital technology are changing the very ways in which entrepreneurs run their businesses.
 
 

17 photo illusions that look so real

What if they aren’t illusions? What if that dog really has a human foot – then what?

 
 

For chic geeks...

It’s THIS easy for someone to steal your ATM pin!
Check out the speed of this robo-cheetah!
New GIF keyboard on iOS for added fun!
Puppy goes crazy over iPad game

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...