FAO Food Price Index eases in October

The FAO Dairy Price Index averaged 204 points in October, down 5 percent from September and stood at around the same level as in October 2010. The decline of prices in recent months reflects improvements in world export availability and a fall in the value of the Euro in relation to the US Dollar, which promoted competition among exporters, as import demand remains firm.

The FAO Sugar Price Index averaged 361 points in October, down 5 percent from September and 10 percent from the peak it reached in July 2011. Sugar prices have declined following better than earlier anticipated output in Brazil, the world leading sugar producer, but also in Europe, India, and Australia, combined with expectations of a slowing demand from the manufacturing and food preparation sectors.