FAO sees no more big food price spikes this year
Saturday, 2 October 2010
MILAN, Oct 01 (Reuters): The United Nations' food agency foresees no big spikes in global food prices this year after prices climbed to the highest level in 25 months in September, the Food and Agriculture Organisation's economist said.
The FAO's Food Price Index, which measures monthly price changes for a basket of cereals, oil seeds, dairy, meat and sugar, rose in September to the highest level since August 2008 at 188.2 points, up from 176.9 points in August, FAO data showed on Friday.
"There is no threat of major price spikes reappearing" for the rest of the year, FAO economist Abdolreza Abbassian told Reuters.
Main drivers for rising prices in September were grains and sugar, but with wheat and corn prices falling back from recent highs, FAO expects a correction in October to an upward trend in global prices seen in the past four months, Abbassian said.
"(Grain) supply this year seems to be adequate enough, and perhaps we've had too much of a hype over price increases over the summer ... The current indication for October is (for) milder prices than in September," he said.
He said it was too early to give forecasts for price trends next year, with a lot depending on new crop grain plantings in Russia and other major producing countries.
The FAO's Food Price Index, which measures monthly price changes for a basket of cereals, oil seeds, dairy, meat and sugar, rose in September to the highest level since August 2008 at 188.2 points, up from 176.9 points in August, FAO data showed on Friday.
"There is no threat of major price spikes reappearing" for the rest of the year, FAO economist Abdolreza Abbassian told Reuters.
Main drivers for rising prices in September were grains and sugar, but with wheat and corn prices falling back from recent highs, FAO expects a correction in October to an upward trend in global prices seen in the past four months, Abbassian said.
"(Grain) supply this year seems to be adequate enough, and perhaps we've had too much of a hype over price increases over the summer ... The current indication for October is (for) milder prices than in September," he said.
He said it was too early to give forecasts for price trends next year, with a lot depending on new crop grain plantings in Russia and other major producing countries.