World food prices fell for a fourth consecutive month in July, with a sharp decline for grains, oilseeds and dairy products outweighing strong meat and sugar prices, the United Nations agriculture agency reported on Thursday.
The UN Food and Agriculture Organisation’s (FAO) Food Price Index, which measures the monthly change in international prices of a basket of 55 food commodities, averaged 203.9 points in July, down 4.4 points, or 2.1 per cent, from June.
“The lingering decline of food prices since March reflects much better expectations over supplies in the current and forthcoming seasons,” said FAO senior economist Concepción Calpe.
The FAO Cereal Price Index averaged 185.4 points in July, down 10.7 points (5.5pc) from June, and as much as 36.9 points (16.6pc) below the level one year ago.
Lower grain prices “reflected excellent production prospects as well as expected abundant exportable supplies in the 2014-15 marketing season,” according to the FAO.
