FOOD PRICES RISE FOR SECOND MONTH, STRONG CEREAL CROP FORECASTED FOR 2013 – UN AGENCY

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From: UNNews <UNNews@un.org>
Date: 9 May 2013 12:00:00 -0400
Subject: FOOD PRICES RISE FOR SECOND MONTH, STRONG CEREAL CROP
FORECASTED FOR 2013 – UN AGENCY
To: news11@ny-mail-p-lb-028.ptc.un.org

FOOD PRICES RISE FOR SECOND MONTH, STRONG CEREAL CROP FORECASTED FOR
2013 – UN AGENCYNew York, May 9 2013 12:00PMWorld food prices rose
for a second straight month, the United Nations Food and Agriculture
Organization (FAO) today
<"http://www.fao.org/news/story/en/item/175772/icode/">said, while
global production of coarse grains could set a new record this year
with strong growth also projected for global wheat and rice
production.

FAO's Food Price Index – which measures monthly changes in
international prices of a basket of meat, dairy, cereals, oils and
fats, and sugar – rose two points to 215.5 in April, up one per cent
from March.

The slight boost was driven mainly by a spike in dairy prices which
indexed an averaged 259 points in April, up nearly 34 points or almost
15 per cent from March. The change is due mainly to a lull in milk
production in New Zealand, the world's largest producer.

The FAO Cereal Price Index slipped 10 points or 4.1 percent in April
to 235 points, but it still 11 points higher than in April 2012.

The rising trend for cereals is forecasted to last throughout the
year, barring unusual weather conditions. Coarse grain production is
expected to set a new record at 1.266 million tonnes, up 9.3 per cent
from the 2011 high of 1.167 million, according to the May issue of
FAO's 'Cereals Supply and Demand Brief.'

The Rome-based agency predicts that global wheat production will reach
695 million tonnes, up 5.4 per cent from last year's harvest and just
short of the 672 million record level in 2011.

Production of maize in the United States and recovery from drought in
the Commonwealth of Independent States (CIS) is expected to drive this
year's harvest to about 960 million tonnes, about 10 per cent higher
than in 2012. The US, the world's largest maize producer, is expected
to plant the largest area of maize since their highest level in 1936.

Still tentatively, FAO foresees rice production in the forthcoming
2013 season to rise to 497.7 million tonnes, 16 million tonnes more
than in 2012, with particularly large increases expected in India and
Indonesia.

In addition, prices for oils and fats fell 1.5 per cent, or 2 points,
from March. Weakening energy prices and concerns about the global
economy continued to weight on the vegetable oil complex, FAO said.

Meat prices averaged 179 points in April, keeping level since the
latter part of 2012, but overall higher than the historical standards.

The FAO Sugar Price Index slipped 9 points or 3.6 per cent from March
to 353 points in April.May 9 2013 12:00PM
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