DUSHANBE, August 8, 2014, Asia-Plus – According to FAO report released on August 7, the FAO Food Price Index decreased for a fourth consecutive month in July mainly due to a sharp decline in international prices for maize, wheat and certain oilseeds, reflecting ample supplies for these commodities.
Based on the prices of a basket of internationally-traded food commodities, the FAO Food Price Index reportedly averaged 203.9 points in July 2014, down 4.4 points (or 2.1 percent) from a revised value in June and 3.5 points (or 1.7 percent) below the July 2013 level.
In contrast, meat prices rose for the fifth consecutive month in July, and those for sugar remained firm. The fall in quotations for grains, oilseeds, as well as dairy products pushed down the FAO Food Price Index to its lowest level since January 2014, the report notes.
The FAO Cereal Price Index reportedly averaged 185.4 points in July, down 10.7 points or5.5 percent from June and as much as 36.9 points or 16.6 percent below the level one year ago.
In particular the fall in international prices for maize (down 9.2 percent from June) and wheat (down 5.8 percent) reflected excellent production prospects as well as expected abundant exportable supplies in the 2014/15 marketing season.
In contrast, rice prices edged marginally higher, on renewed import demand, especially as Thailand”s sales from public reserves remained suspended.
The FAO Vegetable Oil Price Index averaged 181.1 points in July, down 7.7 points or 4.1 percent from June. The decline continued to be primarily driven by falling soy and palm oil prices.
The FAO Dairy Price Index averaged 226.1 points in July, down 10.3 points (4.4 percent) over June and 17.5 points (7.2 percent) less than the same period last year. Reduced import demand – including a decline in purchases of butter by Islamic countries during Ramadan – contributed to the downward trend in dairy prices.
A continued strong demand for meat in Asia and particularly China, helped to edge up the FAO Meat Price Index which averaged 204.8 points in July, 3.7 points (1.8 percent) higher than its revised value in June and 25.4 points (14.1 percent) above the same period last year. Average prices for poultry and ovine meat also rose, while those for pig meat fell back somewhat from the all-time high registered in June.
