Global food prices have strong fall in August, says FAO

ROME-global food prices have dropped dramatically in August, pressured by a wide offer and by external factors including reduction in energy prices and concerns about the slowdown of China's economy, said on Thursday the United Nations food and Agriculture Organization (FAO). The price index formulated by the UN agency, which measures monthly variations in the prices of a basket of cereals, oilseeds, dairy, meat and sugar, stayed at 155.7 points in August, down 8.5 points, or 5.2 percent, compared with July. The FAO said it was the strongest monthly decline since December 2008. Most global commodity prices have been pressured by fears of problems with China's economy and the appreciation of the dollar. The combination of these factors and expectations of extensive stocks are heavy on food prices. The Senior Economist Abdolreza Abbassian, FAO said there are few signs of reversal of the downward curve of the prices in the coming months. "The deceleration of a country with the population and size (of China) affects all sectors, including agriculture," he said. The FAO also revised upward its forecast for global cereal harvest in 2015, to 2.54 billion tons, but still below the record of 2014.