Monday, March 12, 2012

Better supplies to drive world food prices lower in 2012?

from reuters: Improved grain supplies will help lower food prices this year after sharp rises in 2011 and take the wind out of price volatility, easing inflation concerns, a senior official at the United Nations' food agency told Reuters on Monday. Over the next decade, however, prices are set to rise for major food and agricultural commodities, Abdolreza Abbassian, senior grain analyst and economist at the UN's Food and Agriculture Organization (FAO), said at the Reuters Food and Agriculture Summit. "We do expect the food prices in 2012 to be averaging perhaps slightly below 2011. We expect also slightly less volatility this year compared to last year because of better inventories," Abbassian said in a telephone interview.