Publish Date: 5 March 2016 - 08:40

ROME, Mar. 05 (MNA) –The index of the United Nations Food and Agriculture Organization (FAO) has indicated that food prices remain stable on the international market and in fact show a downward trend, The index reached an average of 150.2 points in February, very similar to January when it stood at 150.0.

According to the FAO, despite a fall in the prices of sugar and dairy products, the market was affected by the rise in prices of vegetable oils, up 8 percent on the previous month. This was due to increase of 13 percent in the price of palm oil, following news of a possible decline in production in the near future.

The index of FAO food prices is a weighted calculation based on international trade in five main groups of food commodities: cereals, vegetable oils, dairy products, meat and sugar.

The UN body also published its first forecast for the world wheat harvest in 2016, with a projection of 723 million tons, nearly 10 million less than last year's record.

The main cause is the dry weather, which has caused a reduction in winter planting in Russia and Ukraine. However, it is expected that China and Pakistan will harvest wheat crops in record levels.

 

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