World food prices dip

Declines in sugar, dairy offset new high for meat prices

PARIS:

Global food commodity prices dipped in September as declines in sugar and dairy offset a new peak for meat prices, the United Nations' Food and Agriculture Organisation (FAO) said on Friday.

The FAO Food Price Index, which tracks a basket of internationally traded food commodities, averaged 128.8 points in September, down from a revised 129.7 in August.

The index was up 3.4% on the same month last year, though nearly 20% down from a record level in March 2022 following Russia's full-scale invasion of Ukraine.

The indicator, which had climbed to a two-year peak in July before stabilising in August, was curbed last month by a 4.1% drop for FAO's sugar price index, which reached its lowest since March 2021.

The fall for sugar reflected an improving supply outlook, with higher than expected production in Brazil and favourable harvest prospects in India and Thailand, FAO said.

The agency's dairy price index slipped 2.6% month on month, driven in turn by a sharp decline in butter prices amid increased production prospects in Oceania.

Its cereal benchmark saw a 0.6% decline from August, with wheat prices dropping for a third straight month due to large harvests and subdued international demand, while maize prices also decreased, partly pressured by a temporary suspension of export taxes in Argentina.