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FAO Food, Agri Commodities Indexes Fall in Oct

Source: Reuters
14/11/2008

Milan, Nov 14 - Food and main agricultural commodities indexes calculated by the UN's Food and Agriculture Organisation, (FAO) plunged in October as world prices of major food and feed commodities fell sharply, FAO said on Thursday.

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Following are the main points from the FAO statement:

* The FAO Food Price Index (FFPI) dropped nearly 13 percent, or 24 points, on the month in October, falling to its lowest level since August 2007. The FFPI had been rising steadily since early 2006 and hit a record high of 219 points in June 2008. In October the index dropped 6 percent below October 2007.

* The FAO Cereal Price Index fell to 190 points in October, down 16 percent from September and 3 percent from the October 2007. It hit an all time high of 278 points in April 2008.

* The FAO Oils/Fats Price Index fell 18 percent on the year and 43 percent below the June record, hit by the improved global 2008/09 supply outlook, concerns about a general economic slowdown and the recent sharp drop in energy prices.

* The FAO Sugar Price Index dropped 12 percent from September but was 19 percent above October 2007. The October fall was due to larger than expected supplies available in Brazil and to improved yield prospects for sugarcane crops in India, the world's largest consumer of sugar.

* The FAO Meat Price Index fell to 135 points in October, nearly 8 percent below its peak in August. Meat prices rose steadily since the beginning of 2008 but recent hikes in slaughtering rates, a stronger dollar and a slowdown in demand have been hitting meat prices since September.

* The FAO Dairy Price Index fell 11 percent from September. Increased supplies, weaker international demand and a stronger U.S. dollar contributed to the decline in prices of most dairy products. In October, the index was 36 percent below its peak in November 2007.



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