(Boursier.com) – For the third consecutive year, food prices fell in 2014, according to United Nations FAO index which stood at 202 points, down 3.7% compared to 2013. “A steady and abundant supply of food, record inventories, a stronger dollar and falling oil prices have contributed to this decline,” said the organization.
The drop in Oil pushes prices
In detail, all foods recorded a fall in prices, with the exception of meat (+ 8.1% compared to 2013). “The decline in oil prices has led to downward trends for products that can be used for biofuel production, including sugar, but also palm oil,” said one of the experts of the organization. The sugar prices have thus dropped nearly 10 points a year, while palm oil recorded its lowest price level in five years.
Harvest records
In addition to falling prices of the black gold, some food products such as cereals have seen their prices decline due to excess supply (-12.5%), with record production and large stocks. Regarding wheat, the organization states that “fears that Russia could apply export restriction measures have pushed up prices (…) but the general strengthening of the US dollar and weak trade has limited the increase. “
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