Global food prices drop to 11-month low in October, UN agency reports
FAO's Food Price Index averaged 216 points last month, down 4 per cent from September, the agency said in a news release . The index is a measure of basic food prices at the global level, the UN News Centre reports.
"The drop was triggered by sharp declines in international prices of cereals, oils, sugar and dairy products," said FAO. "Meat prices declined the least."
The agency attributes the decline to an improved supply outlook for a number of commodities and uncertainty about global economic prospects. A record harvest is expected this year for cereals, states the Outlook, which forecasts a record 2,325 million tonnes - 3.7 per cent above last year. Cereal prices are expected to stay relatively firm well into 2012.
Most agricultural commodity prices could remain below their recent highs in the months ahead, according to FAO's biannual Food Outlook report , which analyzes developments in global food and feed markets and was also published today.
A record harvest is expected this year for cereals, states the Outlook, which forecasts a record 2,325 million tonnes - 3.7 per cent above last year. Cereal prices are expected to stay relatively firm well into 2012.
FAO said that global cereal prices have declined in recent months, with the Cereal Price Index registering an 11-month-low of 232 points in October. Prices, on average, however remain 5 per cent higher than last year's already high level.
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