Global food prices at their lowest since September 2009: FAO
The May decline was driven by a drop in cereal, dairy and meat prices
New Delhi: Global prices of major food commodities hit a six-year low in May, the United Nation’s Food and Agriculture Organization (FAO) said on Thursday.
The FAO Food Price Index, which tracks international prices of five major food commodity groups—cereals, meat, dairy products, vegetable oils and sugar—averaged 166.8 points in May, the lowest since September 2009, and down 1.4% from April and 20.7% from a year ago.
The May decline was driven by a 3.8% monthly drop in the cereal price index, a 2.9% drop in the dairy price index and a 1% drop in the meat price index, FAO said in a release.
However, the sugar price index rose 2% due to temporary delays in Brazil’s crushing season despite abundant supplies.
“The increase (of sugar prices) in May, which represents the first significant rebound since last October, was mainly due to a slow start of the crushing season in central-south Brazil, as raw sugar prices remain under pressure of large supplies and growing surpluses in 2014-15," FAO said.
FAO’s latest cereal Supply and Demand Brief estimates that global rice production will grow by 1.3% from last year, mainly due to increases across Asia.
“However, the forecast is still subject to much uncertainty, as the outcome of the season will very much depend on the unfolding of the season in the next few months," FAO said.
Global wheat production in 2015 is estimated at 723 million tonnes, 0.8% lower than the previous year. According to FAO, the contraction is due to lower production in the EU, India and the Russian Federation, which account for nearly 40% of the global wheat output.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!