was mainly fueled by the worst drought in more than half a century. FAO's food Price Index, which measures monthly price changes for a basket of cereals, oilseeds, dairy, meat and sugar, fell for the third month in a row in December to 209, its lowest level since June, led by declines in cereals and oils prices. Prices are high and most likely will remain high in 2013/2014.
Good supply prospects for corn and soybeans in the southern hemisphere would help offset tightness in the northern hemisphere, reducing the risk of supply shocks, he said.
Situation for wheat remained more cautious, due to concerns over high usage and a lack of high quality wheat in the market.