World food prices only more expensive

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Global food prices rose in March for a third straight month with more hikes coming agency said on Thursday the United Nations add to anxiety before hunger and a new wave of social unrest in poor countries.

Record high prices for basic foodstuffs last year to the Arab spring were one of the most important factors, contributed to riots in the Middle East and North Africa, as well as bread riots in other parts of the world.

The cost of food is this year after descending from a Feb. 2011 Rose record high.

The FAO index which changes measures monthly price of a basket of cereals, oil seeds, milk, meat and sugar, in March, up from a revised average 215.9 points 215.4 points in February, who said United Nations food and Agriculture Organisation (FAO).

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Although under the February 2011, highlight of 237.9, still higher than during a food crisis of 2007 / 08, price is the index that global alarm.

"The food crisis not since gone", said Emilia Casella, spokeswoman for the UN World Food Programme. "A major concern and a big reason why people eat are remained unsure prizes."

The FAO Senior Economist and grain analyst Abdolreza Abbassian of told of Reuters there was room for further price rises in the first half of this year, particularly for corn and soybeans, which could drive the price of wheat.

Higher food prices mean higher import bills for the poorest countries, which produces enough to eat at home.

The net grain import is account of the countries with low income food deficit, known as LIFDCs, expected to a record $ 32.62 billion in 2011-12 from 32.28 billion $ in 2010 / 11 due to the higher prices and lower domestic production increase, said in March the FAO. Poor countries face unrest, if they can't find the money.

"Rising food prices are place fresh pressure on policy makers around the world at a time when many Governments have only less money", said Larbi Sadiki, an expert in North African politics of the Exeter University of UK.

"In North Africa food subsidies are a red line, especially in Tunisia and Egypt," he said. "People can be to await on the road to social justice."

US soybean futures rose plantations around 7 percent in March and about 17 percent in the first quarter of this year, spurred by concerns about tight supplies such as drought in South America and smaller U.S. hit won.

FAO cereal price index 227 points in March up 1 point from February with corn prices show gains, supported by low inventories and a strong soybeans averaged, the FAO said. The FAO oils/greases price index relegated to 245 points in March to 6 points, or 2.5 percent, February.

High oil prices have since earlier this year fanned inflationary concerns. Despite the region's economy stumble consumer prices in the 17 Nations were 2.6 percent in March from a year ago, parts of euro.

"Index of food has be an extremely high correlation with oil prices and oil prices until it becomes difficult not to follow, for food prices," said Nick Higgins, commodity analyst at Rabobank international.

Energy prices affect the production of fertilisers, as well as distribution of food and machinery costs use farm.

"We saw really, that (food index) to sell more in Q4 2011 as anomalous and related offs from the threat posed by the European economic situation rather than agricultural basics rejects," he said.

Tight supplies
The FAO cut down its forecast for the world in 2011 cereal production easily on a still record 2.343 billion tons from a previous estimate 2.344 billion tons. It confirms an earlier forecast for world wheat output 1.4 percent from the last year's record harvest to 690 million tons 2012 drop in.

Abbassian said corn stocks at present far from pleasant were and a substantial increase in the output was necessary in order to replenish them.

Coarse grains stocks, which corn, almost 3 million tonnes to 171.3 million tonnes at the end of season 2011 / 2012, could go back the lowest among them since 2008, the FAO said.

A report of U.S. Government last week with lower than expected estimates of cereal stocks and reduced soybean and wheat plantings in concerns about global grain supplies, drive a rally in grain futures recorded.

Stocks of cereals in the EU are set, a four year low hit by the end of the marketing campaign in 2011-12, with a declining harvest Outlook further setbacks threaten next season, traders and analysts say.

Strong price, the swings because of weather changes in likely important producing countries and a further price volatility could come if U.S. farmers choose more soy plants after baited by high prices, the FAO Abbassian said.

"If I were a farmer and I I would look at the steep increases we have intentions since the report of planting, be a bit more careful do everything in maize and would be soybeans as also a good option," he said.

World market prices for food in the second fall could be half of this year with new cultures easing tension and hit full-year average prices below the record level of 2011 market, he said.

The FAO raised its forecast for sharply observed world cereal stocks carry - the amount of 1 million tonnes from the previous estimate to 519 million tons, 15.6 million tonnes of the season opening level, before all rice stocks thanks increased at the end of the current season marketing - left.

But the persistently high prices this year keep the question at the top of the agenda for policy makers.

"We will died 7.2 billion people on Earth in the year 2015, and more than a million of hunger in 2011." The situation will not improve and in fact the opposite is going to happen, "Pierre REULAND, Interpol Special Representative of the European Union, told a meeting of the European security officials in January." "For poor people, the struggle for life will not be better than it is today."

(C) Copyright Thomson Reuters 2012.