Global food prices have declined by 6 percent over the last quarter, according to the latest World Bank Food Price Watch. However, the report warns that prices are still not that far from their historical peak, at only 16 percent below the all-time high reached in August 2012.
Favorable weather and increased production prospects have contributed to sustained price declines, particularly in grains, which saw prices fall by 19 percent from June. The decline in grain prices was led by maize and rice (32 and 16 percent reductions, respectively); however, wheat prices saw a slight increase during this time (4 percent).
Deteriorating weather conditions remain a concern, though, particularly in South America, Black Sea countries, China, and India. Poor conditions may continue to drive up the price of wheat in the coming months. These continuing weather concerns, combined with potential currency fluctuations, mean that the sustained price declines are still fragile.