THE United Nations food agency’s world price index fell in October to its lowest level in more than two years, driven by declines in sugar, cereals, vegetable oils and meat.
The Food and Agriculture Organization’s price index, which tracks the most globally traded food commodities, averaged 120.6 points in October, down from 121.3 for the previous month, the agency said in a report.
“International wheat prices fell by 1.9 per cent in October, reflecting generally higher-than-earlier-anticipated supplies in the United States of America and strong competition among exporters,” the FAO said.
“World milk powder prices increased the most, principally driven by surges in import demand…especially from Northeast Asia,” the FAO said.
Dairy bucked the downward trend in prices with the FAO index rising 2.4 points to 111.3 points following nine months of consecutive declines. The FAO Cereal Price Index averaged 125.0 points, down 1.3 points from September.
“World milk powder prices increased the most, principally driven by surges in import demand…especially from Northeast Asia,” the FAO said.
