FAO: Food prices have decreased further

World average food prices continued to fall in May, due to the price decrease of cereals and oilseeds. The food price index of the United Nations’ Food and Agriculture Organization (FAO) fell to 204 points in May from the 213 points of April.

According to FAO's latest forecast, 2.419 billion tons of grain will be harvested this year worldwide. The organization previously estimated the expected yield to 2.371 billion tons. The world's grain reserve – which is an important price driving factor – at the end of the season 2012/13 will reach 548 million tons, compared to the previously forecasted 524 million tons. (MTI, tozsdeforum.hu)