THE Food
and Agriculture Organization (FAO) has reported that global food
prices were down for the second straight month in May and that the outlook
for worldwide cereal supply has improved considerably since last month.
FAO’s Food
Price Index continued its decline from the 10-month high it experienced in
March, the agency said in a news release, noting that prices fell as generally
ample supplies weighed on international prices for most commodities included
in the Index.
The Index – which measures monthly changes in global prices of a basket of meat,
dairy, cereals, oils and fats, and sugar – averaged 207.9 points in May 2014,
down 2.5 points from April.
According to FAO, the Index had risen to a ten-month high of 213 points in March,
but fell in April and May amid lower dairy, cereal and vegetable oil prices.
Sugar prices went against the trend, making strong gains in May, while meat remained
firm.
The Cereal Price Index was down 2.4 points in May, as compared to April, with
the decline mostly triggered by maize prices, which fell in response to favourable
growing conditions and good supply prospects in 2014/15.
Wheat prices, which had contributed to price increases in previous months, partly
amid fears of disruptions to trade flows from Ukraine, also fell, while rice
prices saw little change.
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