Global food prices fall in October: UN food body FAO

Global food prices in October dropped due to lower dairy products, averaging 27 percent below an all-time high in early 2011, according to the United Nations Food and Agriculture Organization (FAO) on Thursday.

In a statement, the organization said: "The FAO food price index averaged 176.4 points for the month of October, down 1.3 percent from September while still up 2.5 percent from a year earlier."

The food price index, which is a measure of monthly change, is a trade-weighted index that tracks international market prices of five major food commodity groups.

The biggest drop was in the dairy prices index with 4.2 percent in the month, marking its first drop since May, it said.

"International quotations for butter and whole milk powder eased in October, as importers held back on purchases awaiting new supplies from Oceania, while low demand and ample intervention stocks in the EU pushed skim milk powder prices down," it said

The vegetable oil price index fell 1.1 percent in October as key palm and soy oil prices eased with positive production prospects.

The meat price and the sugar price indices also decreased by 0.9 percent and 0.7 percent, respectively.

However, the cereal price index slightly rose by 0.4 percent because of higher rice prices even as wheat quotations were generally lower.