Global food prices fell sharply last month: FAO
08 Jun 2012
Global food prices fell sharply last month, hitting their lowest since September 2011, on increased supplies, growing global economic uncertainties and a stronger US dollar, UN body Food and Agricultural Orgnisation (FAO) said today.
"Global food prices have dropped sharply in May due to generally favourable supplies, growing global economic uncertainties and strengthening of the US dollar," FAO said in a statement.
The FAO Food Price Index (FPI) was down by 4 per cent in May. It averaged 204 points and was 9 points down from April, hitting the lowest level since September 2011 and around 14 per cent below its peak in February 2011, it added.
The index is a monthly measure of the change in international prices of cereals, oilseeds, dairy products, meat and sugar.
"Crop prices have come down sharply from their peak level but they remain still high and vulnerable due to risks related to weather conditions in the critical growing months ahead," said FAO grain analyst Abdolreza Abbassian.
The global body on the farm sector has also raised the forecast for world cereal production on the back of bumper maize output in the US.
