“The decline from one year to the other occurred despite the good performance of the sub-index of the meat has reached an exceptional average of 199 points, an increase of 8.1% 2013. Grain prices, however, fell by 12.5% compared to the previous year as a result of forecasts of record harvests and abundant stocks, “said FAO. This trend was also seen in December.
In fact, after three months of overall stability, the monthly price index FAO food fell during that month. According to FAO, this decrease is due to a sustained and abundant supply of food, record inventories, a stronger dollar and falling prices of oil, among others.
In its report, released Thursday 8, FAO indicates that the FAO food price index has averaged 188.6 points in December 2014, a decrease of 1.7% the previous month. It was weighed down by the contraction of the price of sugar and palm oil.
In detail, it is stated that the FAO price index of grains averaged 183.9 points in December 2014, representing an increase of 0.4% compared to November, “wheat prices took advantage of fears of a possible limitation of exports from Russia,” says one. The organization states further that rice prices fell sharply due to the abundance of exportable supplies.
Due primarily to the erosion of demand in the first palm oil as a raw material for biodiesel following the fall in world prices of oil, FAO price index of vegetable oil, for meanwhile, declined 2.4%. With an average of 161 points, he recorded in December 2014 to its lowest level in five years.
The same goes with the FAO price index for dairy products fell by 2.3% to 174 points, its lowest level since the end of 2009. “This contraction is due to an increase exportable supplies and reduced the pace of purchases of some major importers such as China and Russia, “says FAO. In this case, the most significant price decreases were recorded for milk powder, butter and cheese.
About the FAO price index of meat, we note that it is folded in December 2014 with a decline of 1.9% from the previous month. This decrease is explained by a decline in the prices of beef and lamb from Oceania, among others.
Finally, the index FAO sugar prices fell 4.8% to 291 points in December 2014, its lowest level in four years. The abundant supply in major producing countries like Brazil would be the main cause of this decline. Furthermore, the FAO says, “the fall in prices of crude oil, which reduced demand on sugar crops to derive ethanol, also weighed on international sugar prices.”
Alain Bouithy
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