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.
