FAO has released its Food Price Index for August, citing stabilizing world food prices. The Food Price Index has remained steady since July at 213 points. The report points out that while this level is high, it is still 25 points below the peak seen in February 2011.
Cereal prices stabilized at 260 points in August. Slight increases in wheat and rice prices were offset by a slight drop in maize prices, a decline caused by heavy rains in some drought-hit areas of the US and the announcement that Russia will not impose export restrictions. The Oils/Fats Index was also unchanged from July. Gains in soybean, sunflower, and rapeseed prices were offset by continuing weakness in palm oil prices.
The Meat Price Index rose 4 points in August. This increase mainly reflects the higher price of the grain-fed pig and poultry sectors. August's increase comes after three months of declines in meat prices.
Despite stabilizing prices, FAO Director General Jose Graziano da Silva has still called for international action to calm world food markets. FAO has cut its 2012 world cereals output forecast by 4 percent and is urging countries to review biofuel mandates and avoid panic buying and export restrictions.