The Food and Agriculture Organization of the United Nations lowered its forecast for world cereal production in 2012-13 because of dry weather concerns for the United States corn crop. But, FAO also said that the overall supply and demand situation remains adequate.
Their global cereal output estimate was cut by move than 23 million metric tons to 2,396 million tons. That is still a record high and a 2 percent increase on the year. FAO’s forecast for corn production in the U.S. fell by 25 million tons to 350 million tons, still 11.5 percent higher than in 2011.
FAO also reported a decrease in world food prices by 1.8 percent in June. Food prices fell for the third consecutive month to their lowest level since September 2010, as all commodity groups registered declines. FAO said the food price index fell by four points from May to a new level of 201 points. The index is now 15 percent below its peak in February 2011.
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