Fears of Global Food Price Crisis Recede
by Nigel Hunt and Veronica Brown (Reuters) * USDA report paints less severe corn crop picture than feared
* FAO says situation seems comfortable
* Analysts still wary on prices as U.S. corn harvest in early stages
The third global food price spike in four years may have peaked after a summer of stunning increases on cereal markets, as a U.S. government report on Wednesday raised hopes that a full-blown food emergency could be averted.
Fears of unrest and hunger seen in the 2007/08 crisis emerged as the worst U.S. drought in over half a century and persistent dryness in other key grain producing countries sent corn and soybean prices to successive record highs.
But the U.S. Department of Agriculture on Wednesday cut its forecast for the country’s corn crop by less than one percent, indicating the worst drought in U.S. Midwest in 56 years may have done less damage than anticipated.
“The situation seems pretty comfortable compared to what many people feared,” said Abdolreza Abbassian, senior economist and grain analyst at the United Nations Food and Agriculture Organization (FAO). READ MORE and MORE (DomesticFuel.com)