Global food prices fell in January, continuing an almost uninterrupted decline since last April due to ample global supplies of most main food groups, the United Nations food agency said on Thursday.
The Food and Agriculture Organization's (FAO) price index, which measures monthly price changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 182.7 points in January, 3.6 points below its revised reading for December.
The index has now dropped every month since April 2014, barring a short-lived respite in October, FAO said.
"Supply keeps being revised up, and on the import demand side, there really isn't much activity simply because many importing countries themselves have very good supply," said FAO senior economist Abdolreza Abbassian.
FAO's forecast for world cereal production in 2014 hit a new record high of 2.534 billion tons, marginally higher than it predicted in December.
The outlook for crops in 2015 is favorable, partly thanks to good weather conditions and more planting in North America and parts of the Middle East and north Africa, which outweighed decreases in Russia and parts of Far East Asia, FAO said.
Cereals stocks at the end of the 2014-15 season are now forecast to be 622.7 million tons, marginally lower than previously forecast.
Currency fluctuations have affected trade patterns and food prices in countries that have experienced higher currency volatility, and price declines and stability have not been seen in some importing countries, Abbassian said.
The lower oil price could also favor production, Abbassian said, as farmers can still make a decent margin on their produce due to lower input costs.
REUTERS