World food prices drop for fourth straight month

World food prices fell for the fourth consecutive month in July, as lower prices for corn, wheat, and some oilseeds pushed prices to their lowest level this year, the United Nations Food and Agriculture Organization said Thursday.

FAO's overall World Food Price Index averaged 203.9 points in July, 4.4 percent lower than in June and 1.7 percent bellow its level for July 2013.

Prices for grains and cereals -- the largest component in the index -- dropped 5.5 percent compared to June based on high production levels for corn and wheat, more than offsetting a slight rise in rice prices, which followed Thailand's suspension of sales from its public reserves.

Grains and cereals are now nearly 17 percent cheaper than they were a year ago.

Vegetable oil prices also fell, averaging 4.1 percent lower than in June based on strong production of oilseeds, including palm and soy.

Dairy prices were also down, falling 4.4 percent compared to June, based on lower demand and strong production in the European Union.

But prices for meats rose 1.8 percent and sugar prices edged 0. 4 percent higher. Meat prices were boosted by strong demand for beef from China and other major Asian importers.

FAO's World Food Outlook is based on a basket of 55 goods and 73 price quotations in five major food commodity groups. The next installment will be released Aug. 7.