The monthly index of food prices FAO remained stable in November as prices of vegetable oil and cereals rose and offset the steady decline in dairy prices.
The index of food prices averaged 192.6 points, representing the third consecutive month of stability. The index is now 13 points or 6.4 percent below its level in November 2013.
“The index seems to have bottomed most likely to increase in value in the coming months,” said Abdolreza Abbassian, senior economist at FAO.
After some instability in recent years, the index of food prices FAO is now around its level of August 2010.
The index of food prices is a weighted index of foreign trade which consists of the price indices five commodity groups: cereals, meat, dairy products, vegetable oils and sugar.
The price index for dairy products FAO decreased 3.4 percent from October and 29 percent over the previous year, reaching an average of 178.1 points in November, reflecting an increase in the availability of dairy exports along with the reduction of imports to large markets such as China and Russia.
The sugar price index fell 3.2 percent in October to an average of 230 points in November, up 8 percent below its level a year earlier. This recent decline occurred because the rains in the main producing region of Brazil sugar eased concerns over a prolonged drought in the world’s largest exporter of sugar.
Some clouds on the winter wheat crop north
The grain prices increased significantly for the first time since March due to growing conditions of recently planted wheat crop in the northern hemisphere do not seem optimal. However, rice prices declined with the arrival on the market of freshly harvested supplies. The index of cereal prices averaged 183 points in November, up 2.6 percent from October but 5.8 percent below a year ago.
The price index of vegetable oils also rose, rose 0.7 percent to 164.9 points, which is still almost 17 percent below its level a year earlier-because global oil production sunflower was lower than expected and some reduction in the production of palm oil in Malaysia and Indonesia. However, soybean oil prices fell at the expense of increased subscript.
In November meat prices were stable, although beef and almost all other types of meat have highs. The price index averaged 210.4 points meat, in line with its revised value of October, although an increase of 13.3 percent compared to November 2013. The prices of mutton and lamb rose slightly during the month.