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Global food prices declines as lower demand for cereals and improved supplies pushed prices down

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(Globalpost/GlobalPost)

Global food prices have declined in recent months as lower demand for cereals and improved supplies pushed prices down, the World Bank said yesterday, warning that prices were still near record peaks and volatile.

The World Bank's Food Price Index showed international prices of wheat fell by 11 percent, sugar by 10 percent and maize, or corn, by 6 percent during the four-month period between October 2012 and February 2013.

The poverty-fighting institution said lower demand from a sharp fall in the use of wheat feed and declines in corn consumption for ethanol in the United States has pushed prices down.

Favorable weather conditions in some regions have also raised hopes of better crop supply for 2013.

However, global food prices remain only 9 percent below the all-time high recorded in August 2012, the World Bank said.

http://www.globalpost.com/dispatch/news/asianet/130406/global-food-prices-declines-lower-demand-cereals-and-improved-supplies-