Monday, October 8, 2012

World food prices near crisis levels

World food prices rose in September and are moving nearer to levels reached during the 2008 food crisis.
The United Nations food agency reported on Thursday that the worst drought in more than 50 years in the United States had sent corn and soybean prices to record highs over the summer, and, coupled with drought in Russia and other Black Sea exporting countries, raised fears of a renewed crisis.
The Food and Agriculture Organisation's (FAO) price index, which measures monthly price changes for a food basket of cereals, oilseeds, dairy, meat and sugar, rose 1.4% in September, mainly due to higher dairy and meat prices.
"It's highly unlikely we will see a normalisation of prices anytime soon," said FAO senior economist Abdolreza Abbassian.

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