U.N.'s Food Price Index Decreases Slightly

By CnAgri Print

The FAO Food Price Index averaged 211 points in November 2012, down 3 points from October and the lowest since June 2012, FAO said.

Except for dairy, international prices of all the commodity groups included in the Index fell in November, with sugar undergoing the sharpest dip, followed by oils and cereals. The decline puts the November index value nearly 3 percent below one year ago.

Meanwhile, crop prospects report shows tightening wheat and maize supplies.

Firmer production estimates for 2012 confirm tightening wheat and maize supplies while the outlook for rice remains positive. In spite of a contraction in overall cereal utilization in 2012/13, the world cereal stock-to-use ratio is projected to decline by 2 percentage points from the previous season.