FAO: global food prices are low

Agricultural commodities are going through a period of lower and less volatile prices, according to the FAO Food Outlook released today.

After several dramatic upward price spikes from 2007 through early 2011, most cereal and vegetable oil prices are on a trajectory that is both steady and declining, the Outlook reports in a special feature.

Among the reasons are high inventory levels, sharply lower oil prices and the renewed strength of the U.S. dollar, none of which appear likely to be reversed in the short term, although unexpected shocks, such as weather-driven impacts on harvests, can never be excluded. (MTI)