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FAO food prices fall for second straight month in July

Source: Xinhua| 2019-08-08 20:47:48|Editor: Shi Yinglun
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ROME, Aug. 8 (Xinhua) -- World food prices fell again in July, the second consecutive decrease in prices after five months of increases, pushed lower by prices for grains and cereals along with dairy products and sugar, according to information released Thursday by the United Nations Food and Agriculture Organization (FAO).

The overall FAO Food Price Index dropped 1.1 percent compared to the previous month but it remained 2.3 percent higher than its level a year earlier after steady increases over the first five months of the year.

Prices for grains and cereals -- the largest component in the index -- fell 2.7 percent, pushed down by prices for wheat and corn. Rice prices remained stable, a trend that began in February.

Dairy prices were 2.9 percent lower, a modest drop after falling 11.9 percent in June. But that came after five months of sharp increases, leaving the index 3 percent higher than at the start of the year. The main culprit was weak demand from countries in the northern hemisphere.

Sugar prices slipped slightly based on expectations for higher yields from India in the coming weeks.

Prices for meats and vegetable oil rose slightly, 0.6 and 0.8 percent, respectively, due mostly to seasonal factors.

The monthly FAO Food Price Index is based on worldwide prices for 23 food commodity categories covering prices for 73 different products compared to a baseline year.

The next index is scheduled to be released on Sept. 5.

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