World food prices fall in August

World food prices had their most dramatic one-month fall in nearly seven years in August, the UN Food and Agriculture Organisation (FAO) reported.

It the 16th time in 17 months that the index declined, Xinhua news agency quoted the UN Food and Agriculture Organisation report as showing on Thursday.

The overall FAO Food Price Index fell 5.2 percent compared to July, its biggest one-month decline since December 2008, with prices pushed lower by strong production in most food commodity groups.

Prices for grains and cereals, the largest component in the index, fell seven percent compared to July and are now 15.1 percent lower than a year ago.

Rice prices remain stable based on high demand in China and elsewhere in Asia, but wheat and corn prices dropped dramatically amid strong production forecasts.

Almost all commodity prices fell, with oils and fats down 8.6 percent, milk prices 9.1 percent lower, sugar prices 10.0 percent lower, while meats edged only slightly lower, the only commodity group to buck the trend of dramatic slides.

The next installment of the FAO index, which is based on a basket of 55 goods and 73 price quotations in five major food commodity groups, will be released on October 8.