World food prices dipped in Feb as virus hit demand: FAO

World foods rates slipped in February, ending 4 months of successive raises, with the distribute of coronavirus dampening need for some merchandise, the United Nations foods company said on Thursday.

The Food stuff and Agriculture Organization (FAO) foods price tag index, which measures regular monthly alterations for a basket of cereals, oilseeds, dairy merchandise, meat and sugar, averaged one hundred eighty.5 points last month, down 1. per cent on January.

FAO also a bit upped its forecast for cereal output, predicting a crop totalling some two.719 billion tonnes in 2019, up from a prior forecast of two.715 billion and some two.three per cent larger than the 2018 crop.

The vegetable oil price tag index plunged 10.three per cent from January, led by a slump in palm oil rates, even though the cereal price tag index eased .9 per cent, with the international rates of all key cereals, apart from rice, declining.

FAO said the distribute of the coronavirus contributed to the price tag decline in each indices amid fears the outbreak would cause a world-wide slowdown.

Coronavirus also hit the meat price tag index, which dropped two per cent on the month as imports declined to China, the epicentre of the outbreak, which has so far infected at least 95,300 people globally and triggered a lot more than three,200 fatalities.

The dairy price tag index rose four.six per cent, pushed larger by a increase for cheese, fuelled by tightening export provides from New Zealand and Australia.

Even so, quotations for milk powder fell owing to a slowdown in purchases by China, the world’s premier importer, since of delays in cargo handling in ports, affected by the distribute of the coronavirus, FAO said.