World food prices dip in August, says FAO

Amman, World food prices fell in August for the third month in a row, pushed down by a sharp drop in the prices of sugar, wheat and maize, the United Nations Food and Agriculture Organization (FAO) said on Thursday.

In a report published on its website, FAO’s food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 169.8 points last month compared to 171.7 points in July.

The FAO cereal price index dropped 6.4% in August month-on-month thanks to big drops in the prices of wheat and major course grains, especially maize.

By contrast, rice prices rose, while sugar prices fell noticeably in August, dropping 4% on the previous month “largely on the back of a weakening Brazilian real, which tends to incentivize sugar exports,” FAO said.

These drops failed to offset climbs in other indices, with the vegetable oil price index gaining 5.9% and both meat and dairy prices posting increases of 0.5%.

FAO said global cereal supplies in 2019/20 were expected to be higher than previously anticipated.

Source: Jordan News Agency