For the fifth consecutive month, global food prices fell in November as indications demonstrate prices of commodities are driving even lower, according to an arm of the United Nations as cited by Bloomberg.
From October to November, an index of 55 foods dropped 0.5 percent to 215, according to The Food and Agriculture Organization. While the metric fell 4 percent in October, which was the largest slide since March 2010, the five consecutive months of drops represents the longest fall in more than one year. The metric touched a record high of 237.7 in February.
"Generally speaking, we are in many aspects bottoming out," senior economist Abdolreza Abbassian with the FAO told the news service. "Prices are bottoming out for many commodities in spite of high supplies."
Established in 1945, the FAO serves as a special agency for the UN and it spearheads special efforts to quash hunger while assisting developing nations enhance their farming. Among its responsibilities is raising levels of nutrition and enhancing the productivity of agriculture.
The Cattle Network reports concerns about future supplies could push up food prices, the FAO said.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.