World food prices fall at softer pace in October

The UN Food and Agriculture Organization (FAO) reported on Friday that global food prices have dropped for a third consecutive month in October, although at a slower pace.

The FAO Food Price Index averaged 120.3 points in October, reflecting a decrease of 0.5 percent from the previous month.

The slight decline in October is attributed to lower price indices for sugar, cereals, vegetable oils, and meat, while the index for dairy products experienced a rebound.

The FAO food price index is a trade-weighted index that tracks international market prices of five major food commodity groups.

The cereal price index went down by 1 percent from the previous month due to lower rice and wheat prices.

The vegetable oil price index decreased for the third month in a row, falling 0.7 percent month on month.

“The marginal fall in the price index chiefly reflected lower world palm oil prices, more than offsetting higher prices of soy, sunflower and rapeseed oils,” read the report.

The meat price index edged down by 0.6 percent, marking the fourth consecutive monthly decline with sluggish import demand leading to a fall in the international prices of pig meat.

The sugar price index slipped 2.2 percent from the previous month, mainly led by a strong pace of production in Brazil.

On the other hand, the index for dairy products rose 2.2 percent from September, shifting from a nine-month of fall.

In October, surges in import demand fueled world milk powder prices hike.

Source: Philippines News Agency

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