FAO Food Price Index continued to drop in March due to a sharp decline in prices for sugar
On April 2, press service of FAO announced that a sharp fall in the price index for sugar in March of this year — which reached its lowest level since February 2009 — together with dipping prices for vegetable oils, cereals and meat, more than offset a rise in dairy prices and contributed to the lower index, which in March averaged 173.8 points.
The FAO Sugar Price Index averaged 187.9 points in March, down a sharp 9.2% from February. This was mainly due to improved crop prospects but also the continued weakening of the Brazilian currency against the US dollar, which is supportive to exports.
The FAO Grain Price Index averaged 169.8 points in March, down 1.1% from February and as much as 18.7 % below its level a year earlier. The downward trend in 2015 has been mainly due to large export supplies and mounting inventories, in particular for wheat and corn.
The FAO Vegetable Oil Price Index averaged 151.7 points in March, nearly 3.1% below the February level and reaching its lowest value since September 2009.
The FAO Meat Price Index averaged 177 points in March, down 1% from its revised February value, while the FAO Dairy Price Index rose in March for the second consecutive month to average 184.9 points, up 1.7% from February.