Global food prices fell 1.5% in November

Global food prices fell 1.5 percent in November to their lowest level since June, with sugar, oils and cereals seeing the sharpest drops, the UN's Food and Agriculture Organisation said on Thursday. The Rome-based FAO's Food Price Index averaged 211 points, down from 213 in October. The index had risen by 1.4 percent in September. On a 12-month comparison, the index was down three percent. Sugar prices fell mainly due to increased export capacity from Brazil, while cereal prices dipped because the prospect of export restrictions by Ukraine receded even though there was concern over supply prospects in South America. The sugar price index fell 4.8 percent to 274 points, cereals dipped 1.5 percent to 256 points and oils slid 2.6 percent to 200 points. The meat price index inched down just 0.7 percent to 175 points as the sector's profit margins are squeezed by higher feed prices. The dairy index also went down only 0.5 percent to 195 points.