Rome - World prices fell slightly in January, the United Nations Food and Agriculture Organisation (FAO) -- its first fall in three months.
The FAO on Thursday said that falling prices for rice and other cereals and grains, along with lower prices for sugars, oils, and meat offset a rise in dairy prices. Overall, the index averaged 203.4 points in January, down 1.3% compared to December.
The index had been mostly flat for the previous three months, but was lower for 2013 as a whole.
But FAO said the relative stability of the index's overall stability masked volatility in specific commodity groups, with dairy prices -- the most volatile category in 2013 -- rising nearly 5% over the last two months, including a 1.3% jump in January.
Strong harvests and stable demand from major consumers like China, Thailand, and Indonesia helped push prices for rice and other cereals and grains down 1.3% in January.
Meats (down 1%) and oils and fats (down 3.8%) were also lower, but the biggest mover was for sugars -- the smallest component in the index -- which saw prices fall 5.6% in January.
The FAO's World Food Outlook is based on a basket of 55 goods and 73 price quotations in five major food commodity groups.
The next instalment of the FAO World Food Price Index will be released March 6. – SAnews.gov.za
