According to the latest release of the Fao Food Price Index (FPI) and the new edition of the quarterly Crop Prospects and Food Situation report, both published last 9th July, prices have dipped to their lowest level since June 2010, continuing a steady decline. “The ongoing decline is a sign of robust supply as well as theongoing weakness of many currencies versus the U.S. dollar, which appears set to continue,” said the FAO’s dairy and livestock market experts in the statement. The decline in the Fao Food Price Index (FPI) mainly came as a result of a drop of 6.6 percent in the price of sugar and of 4.1 percent in the prices of dairy products, whichcreates a rebound effect in palm oil and wheat quotations.
In addition, high crop production around the world and low crude oil prices also helped cap global food prices. However, the first thing to underline is the favorable outlook for the production of a number of crops in 2015, as it emerged from the report. For example, favorable worldwide conditions for cereal crops will lead to a better-than-expected production this growing season on a global level.
