The FAO Food Price Index, measuring the monthly change in international prices of a basket of food commodities, fell by four percent in May. It averaged 204 points and was 9 points down from April. This was the lowest level since September 2011 and about 14 percent below its peak in February 2011.
FAO at the same time raised the forecast for world cereal production by 48.5 million tonnes since May, mainly on the expectation of a bumper maize crop in the United States.
FAO's latest forecast for world cereal production in 2012 stands at a record level of 2 419 million tonnes, 3.2 percent up from the 2011 record.
The global cereal utilization is forecast to expand by at least 2 percent in 2012/13, to 2 376 million tonnes, with feed utilization growing by 3.8 percent, while food consumption is expected to increase by just over 1 percent, largely keeping pace with world population growth.
Thursday June 7, 2012/ FAO.