Global food prices declined sharply in May mainly due to favorable supplies, strong US dollar and growing global economic uncertainties, the Food and Agriculture Organization said Thursday.
The FAO food price index, measuring the monthly change in international prices of a basket of food commodities, fell 4 percent in May. The index averaged 204 points and was 9 points down from April.
This was the lowest level since September 2011 and about 14 percent below its peak in February 2011, the UN agency said.
"Crop prices have come down sharply from their peak level but they remain still high and vulnerable due to risks related to weather conditions in the critical growing months ahead," FAO's grain analyst Abdolreza Abbassian said.
The FAO raised the forecast for world cereal production by 48.5 million tonnes since May. For wheat, it expects a contraction of about 3 percent in production in 2012 to 680 million tonnes.
by RTT Staff Writer
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