Global food prices fall in December after months of stability

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Afghan farmer. ©FAO/Giulio Napolitano

Global food prices fell in December after three months of stability, according to the Food and Agriculture Organization (FAO).

The FAO Food Price Index measures monthly changes for a basket of food commodities like cereals, oilseeds, dairy products, meat and sugar.

The Index dropped by 1.7 percent from November, led down by sugar and palm oil.

The agency says that continued large supplies and record stocks, combined with a stronger US dollar and falling oil prices, contributed to the decline.

Abdolreza Abbassian a Senior Economist at FAO in Rome explains.

"When we look at the December numbers we see that the decline has been quite substantial for sugar, 5 per cent drop from November, we had also a big decline in the oils, meat, dairy, only cereals really show a slight increase compared to November and this was entirely driven by much higher wheat prices which offset the decline the rice values."

The increase in the global wheat prices is an exception, says Mr Abbassian.

There are many reasons behind the price hike, he notes, including weather issues and fears the Russian Federation could restrict sales.

Jocelyne Sambira, United Nations.

Duration:  1’15″

 

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