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Global food prices soften

Global food prices have dropped.  The United Nations Food and Agriculture Organization’s (FAO) price index slipped for the sixth consecutive time, with food prices at their lowest level since August of 2010. According to the FAO index, food prices were down 2.6 percent from August, and 6 percent below September 2013.  This is the longest period of continuous declines in food prices since the late 1990’s.

The cereal index declined for the fifth month-in-a-row, down 2.5 percent from August and is 8.8 percent below September of 2013.  Big crops and large export availability contributed to that fall.

The vegetable index dropped for the sixth consecutive month, down 2.8 percent from August to the lowest level since October of 2009.  The price of palm oil is at a five-year low.

The dairy index dropped 6.5 percent from August and is 24.9 percent below September of last year.  Skim milk powder is the big driver here with ample supplies available in Oceania and Europe.

The meat index was 0.3 percent higher in September and is 11.6 percent above a year ago and are at an all-time-high.  The FAO says the slight increase from August to September may indicate the market has topped-out.  Pork prices have actually declined for the last three months while poultry is holding steady.

The sugar index fell 6.6 percent from August to September and is 7.4 percent below a year ago.

Brownfield’s Bob Meyer contributed to this report.