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World food prices fall dramatically in August, continuing 17-month trend

Xinhua, September 11, 2015 Adjust font size:

World food prices had their most dramatic one-month fall in nearly seven years in August, the United Nations Food and Agriculture Organization reported Thursday, the 16th time in 17 months that the index declined.

The overall FAO Food Price Index fell 5.2 percent compared to July, its biggest one- month decline since December 2008, with prices pushed lower by strong production in most food commodity groups.

Prices for grains and cereals, the largest component in the index, fell 7.0 percent compared to July and are now 15.1 percent lower than a year ago. Rice prices remain stable based on high demand in China and elsewhere in Asia, but wheat and corn prices dropped dramatically amid strong production forecasts.

Almost all commodity prices fell, with oils and fats down 8.6 percent, milk prices 9.1 percent lower, sugar prices 10.0 percent lower, while meats edged only slightly lower, the only commodity group to buck the trend of dramatic slides.

The next installment of the FAO index, which is based on a basket of 55 goods and 73 price quotations in five major food commodity groups, will be released Oct. 8. Endit