Food prices for November 2011 almost unchanged – FAO

The United Nations Food and Agriculture Organisation (FAO) says that food prices for November have remained virtually unchanged.

“The FAO Food Price Index (FPI) in November was virtually unchanged from its October level. At the new level of 215 points, the Index was 23 points, or 10%, below its peak in February 2011 but remained two points, or one percent, above its level in November 2010,” the Rome-based agency said in a statement.

The FPI showed that prices of cereals “dropped by 3 points or 1% from October largely driven by wheat prices, which dropped 3%, while rice quotations fell only slightly.

Coarse grain prices remained virtually unchanged,” the FAO said.

Despite the unchanged prices, the agency noted that “the cereals index remained 6 points higher than in November 2010.”

The FAO indicated that its quarterly Crop Prospects and Food Situation report also released November 8, 2011 confirmed a record level of world cereal production of 2,323 million tonnes for 2011 representing a 3.5% increase on 2010 production although marginally lower than October’s estimate.

At this level, the 2011 cereal crop should be sufficient to cover the expected increase in utilization in 2011/12 and also allow for a moderate replenishment of world reserves, the report said.

By Ekow Quandzie