UN: Global food prices slipped in March

By Tuba Sahin

ANKARA

Global food prices fell in March thanks to decrease in sugar and vegetable oils prices, according to a statement released on the website of the United Nations Food and Agriculture Organization (FAO) Thursday.

"Global food prices monitored by FAO fell in March amid large available supplies and expectations of strong harvests," FAO said.

The FAO Food Price Index dropped by 2.8 percent month-on-month in March to nearly 171 points which is also 13.4 percent above its level last year, the organization said.

FAO's Food Price Index measures monthly changes in the international prices of five major food commodity groups -- cereals, meat, dairy products, vegetable oils and sugar.

There was a downward trend in price indexes of the food groups except meat, according to the organization.

"The FAO Sugar Price Index declined by 10.9 percent to its lowest level since May 2016 amid weak import demand and expectations of robust Brazilian supplies entering world markets as a result of strong harvests and slower domestic uptake for bio-ethanol production," FAO said.

The FAO Vegetable Oil Price Index and The FAO Cereal Price Index dropped 6.2 percent and 1.8 percent respectively in the month compared to February, according to the statement.

"The FAO Meat Price Index rose 0.7 percent, led upward by firm import demand from Asia for bovine meat and pigmeat," the organization added.

Meanwhile, the organization also revealed its forecast for cereal market expecting that would be "another season of relative market tranquillity" with grain inventories remaining at near-record levels.

"Worldwide cereal production in 2017 is projected at 2 597 million tonnes, just 9 million tonnes short of the record set in 2016, according to the latest Cereal Supply and Demand report," read the statement.