Global food prices fell in August for the fourth month running, according to the U.N.’s food agency, which again raised its 2013-14 forecast for grain production.
Declines in the price of corn, wheat and edible oils were the main drivers, said the Food and Agriculture Organization.
Food prices surged during the summer of 2012 due to the U.S. drought but a rebound in cereal supplies to record levels have reversed the price trend this year.
The FAO price index, which measures monthly changes for a basket of cereals, oilseeds, dairy, meat and sugar, averaged 201.8 points in August, about 1.9 per cent below July’s level and the lowest since June 2012. It also forecasts global cereal production in 2013-14 to hit a record 2.492 billion tonnes.
But that’s now factored in the market, said FAO senior economist Abdolreza Abbassian.
“We are almost at the bottom. Further declines are likely to be much less than those seen over the past few months,” Abbassian said.