Food Prices Steady in February

The latest FAO Food Price Index , released last week, was unchanged from January levels, remaining steady at 210 points. This is five points lower than the levels seen in February 2012. The Cereals Price Index and Oils/Fats Price Index remained generally steady as well, experiencing a 1 percent drop and 0.4 percent rise, respectively. The slight decline seen for cereals is due mainly to improved wheat and maize prospects in the US.

The latest AMIS Market Monitor, also released last week, saw similarly steady global commodities prices. The report also cites likely rebounds in global wheat and maize production, although it reports a slow start to the 2012/2013 soybean crop as dry weather continues throughout Argentina.