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Global food prices remain unchanged in March

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Sports Car designer Ferdinand Alexander Porsche, with a Porsche 911 Carrera
Sports Car designer Ferdinand Alexander Porsche, with a Porsche 911 Carrera

World food prices remained almost the same in March from their levels in February due to stable prices in most commodities and decline in dairy prices, the United Nations' Food and Agriculture Organization said.

Among various commodity groups, only oil prices showed strength, compensating for falling dairy quotations, while the indices of cereals, sugar and meat prices were largely unchanged from last month's level, it added.

The FAO Food Price Index (FPI) averaged 216 points in March, compared to 215 points in February. The FPI is a monthly measure of the change in international prices of cereals, oilseeds, dairy products, meat and sugar. Global food prices had risen for the second consecutive month in February, driven by high prices of sugar, oils and cereals due to rise in imports and unfavourable weather, which supported prices.

FAO said the scenario is positive in the case of cereals and wheat stocks. "The forecast for world cereal carryover stocks in 2012 has been raised by 1 million tonnes over the previous month to 519 million tonnes. Much of the upward revision relates to expectations of higher rice inventories," the agency said.

The production forecast for wheat in 2012 remains at 690 million tonnes, 1.4% below the record in 2011 and unchanged from last month. In spite of this decline, world wheat supplies in 2012-13 would still exceed the projected need because of large inventories, the FAO added.