Global food prices dipped in August, mainly as the prospect of bumper cereal harvests pushed up expectations for larger grain inventories, the United Nations Food and Agriculture Organization (FAO) said today.
A news release said that the FAO Food Price Index declined 1.3 per cent from July, ending three months of consecutive increases. However, the Index – tracking the monthly change in international market prices for five key commodity groups – remained 6 per cent above its value a year earlier.
The drop in August was largely driven by a 5.4 per cent decline in cereal prices, reflecting a sharp fall in wheat prices as the outlook for production in the Black Sea region improved. FAO raised its forecast for global cereal production to a record 2,611 million tonnes. Worldwide stocks of cereals are also expected to reach an all-time high by the close of seasons in 2018, according to the latest FAO Cereal Supply and Demand Brief, also released today.