Global food prices hold steady
5 May 2011, Rome - Food prices remained virtually steady in April after falling in March following eight months of successive increases, FAO announced today.
However, while the FAO Food Price Index averaged 232 points in April, little changed from March, it was still 36 percent above April 2010 and only two percent below its peak in February 2011.
A fall in sugar prices and a decline in rice helped stabilize the index, but international prices of nearly all other food commodities remained firm.
"A sliding dollar and increased oil prices are contributing to high food commodity prices, particularly grains," said David Hallam Director of FAO's Trade and Market Division. "With demand continuing strong, prospects for a return to more normal prices hinge largely on how much production will increase in 2011 and how much grain reserves are replenished in the new season."