FOOD PRICES FALL FOR THIRD CONSECUTIVE MONTH -- UN AGENCY

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From: UNNews <UNNews@un.org>
Date: 8 Aug 2013 13:00:01 -0400
Subject: FOOD PRICES FALL FOR THIRD CONSECUTIVE MONTH -- UN AGENCY
To: news11@ny-mail-p-lb-028.ptc.un.org

FOOD PRICES FALL FOR THIRD CONSECUTIVE MONTH -- UN AGENCY
New York, Aug 8 2013 1:00PM
Global food prices declined for the third consecutive month, largely
driven by lower international prices for grains, soy and palm oil,
while sugar, meat and dairy prices were also down, the United Nations
Food and Agriculture Organization (FAO) reported today.

The Rome-based agency
<"http://www.fao.org/worldfoodsituation/foodpricesindex/en/">said its
Food Price Index averaged 205.9 points in July, which is 4 points
below June and 7 points lower than in July 2012.

The Index measures monthly changes in international prices of a basket
of meat, dairy, cereals, oils and fats, and sugar.

The FAO Cereal Price Index averaged 227.7 points in July, down 8.8
points from June and as much as 33 points below July last year. "The
sharp decline mostly reflected falling maize prices as favourable
weather boosted hopes of a significant production increase in several
leading maize-producing countries," said the agency.

Wheat prices also fell but the strong pace of exports limited the
decline. Rice price changes varied according to origins, with a
decrease in Thai prices contrasting with higher Vietnamese quotations.

The FAO Oils/Fats Price Index averaged 191 points in July, down by 7
points from June and the lowest level in three years. Meanwhile, while
dairy prices fell overall -- 2.6 per cent from June -- the decline was
by a smaller margin than in the previous two months as a result of
tightening availabilities in Oceania and stagnating milk production
amongst other exporters, principally in Europe, South America and the
United States.

Meat prices, FAO noted, were more or less unchanged from the revised
June level. Prices for poultry and pig meat were lower, while those of
bovine and ovine meat rose.

In addition, sugar prices declined for the fourth consecutive month in
July, on the back of anticipated large surplus production in major
producing areas, notably in Brazil, the world's largest sugar producer
and exporter.

Declining ethanol prices in Brazil also provided an incentive to
convert more sugarcane into sugar instead of ethanol, which put
additional downward pressure on international sugar prices, FAO
stated.

Aug 8 2013 1:00PM
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