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Drop in world food prices in Aug for the 3rd straight month: FAO

World food prices fell in August for the third consecutive month according to the Food & Agriculture Organization. The United Nations food agency attributed this to a sharp drop in the prices of sugar, wheat and maize. The FAO food price index averaged 169.8 points in August from an upwardly revised 171.7 points in July. This index takes into account monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar. While wheat prices remained subdued, those of rice slightly rose due to seasonal effects as well as concerns over the impact of weather on crops in Thailand. There was also a 6.4% drop from the last month in FAO’s Cereal Price Index.