A news release today from the Food and Agriculture Organization of the United Nations stated that, “The FAO Food Price Index was stable in February, as falling sugar and dairy prices offset a substantial jump in vegetable oil prices from the previous month.
“Averaging 150.2 points for the month, the FAO Food Price Index was virtually unchanged from a revised 150.0 points in January and down 14.5 percent from a year ago.”
Today’s update also noted that, “FAO also issued its first forecast for the world’s 2016 wheat harvest, projecting 723 million tonnes of total production, about 10 million tonnes below last year’s record output.”
Reuters writer Isla Binnie reported today that, “World food prices stabilised in February near a seven-year low as rising vegetable oil and meat prices offset declines in cereals, sugar and dairy, the United Nations food agency said on Thursday.
“Food prices have fallen for four straight years and remain under pressure from ample agricultural supply, a slowing global economy and a strengthening U.S. dollar.”
And, Bloomberg writer Whitney McFerron reported today that, “Wheat prices are near a five-year low as large harvests around the world are set to boost grain stockpiles to the highest in three decades. The FAO expects wheat production to drop in the next season because farmers in Ukraine and Russia, two of the top exporting countries, reduced planting of winter crops because of dry weather.”