BUSINESS OF FAO

DECLINE IN WORLD FOOD PRICES

WORLD food prices declined last month to their lowest level in more than two years, led down by much weaker vegetable oil, dairy and cereal prices, the UN food agency said yesterday. The Food and Agriculture Organisation’s (FAO) food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 160.8 points last month, down from a revised 162.9 in October, reaching its lowest level since May 2016. The October figure was previously given as 163.5. FAO said global cereals output in 2018/19 was seen at 2.595 billion tons, down marginally from the previous forecast and 2.4 percent below last year’s record high production. FAO’s forecast for world wheat production in 2018/19 was 725.1 million tons,

2.8 million tons lower than the previous forecast. I Reuters