Monday, September 14, 2015

Global food prices sinking

The index that measures global food prices has hit its lowest level in more than six years.

There are “abundant wheat supplies, supported by larger-than-anticipated harvests in the northern hemisphere,” the United Nations Food and Agriculture Organization (FAO) says.

“The slump in energy prices and concerns about China’s economic slowdown and its negative consequences on the global economy and financial markets” helped pull down food prices,” it said.
The grain prices fell seven percent to a five-year low.

Dairy product prices declined by 9.1 percent to the lowest in six years on limited import demand from China and ample supplies, the FAO said.

A sugar index fell 10 percent to the lowest since 2007 as a weaker Brazilian real encouraged more outbound shipments and on expectations that India will become a net exporter of the sweetener.

Vegetable oil prices fell 8.6 percent to a six-year low on slowing import demand for palm oil in India and China, according to the report.