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Friday, October 05, 2012

Food Prices May Stay High Over Next Six Months on Drought: FAO - Yahoo! Finance

Food Prices May Stay High Over Next Six Months on Drought: FAO - Yahoo! Finance


Global food prices will probably stay high in the next six months after drought in the U.S. and Russia cut grain supplies, said the United Nations.
The global market "will switch to a short supply mode" for the first time in two years, said Hiroyuki Konuma, the regional representative for Asia and Pacific at the UN's Food & Agriculture Organization. "We will have to monitor it very cautiously," he said in a phone interview on Oct. 3.
World food costs rose in September to the most expensive in six months as dairy and meat producers passed on higher feed prices to users, the FAO said yesterday. An index of 55 food items rose to 215.8 points in September from 212.8 a month earlier and compared with a 131.17 average in the past 20 years. Corn traded in Chicago jumped 50 percent since the middle of June as the worst U.S. drought in half a century killed crops.

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