AlHijjah 24, 1436, October 8, 2015, SPA -- The U.N. Food and Agriculture Organization (FAO) said Thursday that stock markets may be growing, but food commodities are experiencing lower and more stable prices, and may hit a record year-on-year drop in 2015. The FAO said that "agricultural commodities are going through a period of lower and less volatile prices," as "most cereal and vegetable oil prices are on a trajectory that is both steady and declining." According to the agency, the downward trend has been assisted by high inventory levels, sharply lower oil prices, and the renewed strength of the American dollar. The FAO said that its food price index hit a six-year low in August, and figures released Thursday showed that it moved up less than a percentage point to 165.3 points, down from nearly 19 percent from one year ago. Declining trade volumes and weaker prices could trigger a record year-on-year drop in the world food import bill in 2015, it said. Lower food prices relative to incomes "seem to be a boon to food security - by making food acquisition more affordable," the agency said, adding that is particularly pronounced in developing countries where food purchases typically account for a significant share of overall household income for the poor.
