World food prices fell by 1.6% from October to November 2015 compared to October in the same year, according to the index of the Food and Agriculture Organization (FAO) report issued Thursday. The exception was sugar prices, which increased for three consecutive months, according to the report. All the other goods witnessed a decline in prices under the pressure of the strong dollar and generally abundant supplies, the report revealed. Compared to November 2014, all food prices fell by 18%. Meat prices recorded the largest decline, reaching 23%, followed by cereals and oils which fell by 16%, and dairy products by 15%, while sugar prices fell by 10%, despite recording an increase in the last few months this year. Grain prices fell by 2.3% in November compared to October, thus recording their lowest price since June 2010. Further, prices of dairy products fell by 2.9% in November compared to October. However, meat prices fell by 1.6% compared to October, in contrast with the rise in sugar prices by 4.6% compared to October, The report attributed the increase in sugar prices to the continued concerns over delayed harvests due to increased rainfall in the production areas. The FAO reduced its forecast for global grain production in 2015/2016 to 2.527bn tonnes from its previous estimate of 2.53bn tonnes. In addition, it reduced its forecast for world wheat production in 2015/2016 to 734.5m tonnes, compared to its previous estimates of 736.2m tonnes.
