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The United Nations reported a sharp drop in global food prices during May, generally due to favorable supplies, growing global economic uncertainties and a strengthening of the United States dollar, UN News reported. The monthly food price index of the Food and Agriculture Organization (FAO) averaged 204 points in May, down nine points from April, the agency said in a news release. This was the lowest level since September 2011. The index measures the monthly in international prices of a basket of food commodities, including meat, dairy, sugar and cereals. The agency raised the forecast for world cereal production by 48.5 million tons since May, with the bulk of the increase expected to come mainly from maize in US amid an early start of the planting season and prevailing favorable growing conditions. FAO’s latest forecast for world cereal production in 2012 stands at a record level of 2,419 million tons, 3.2 percent up from the 2011 record.
(The Ethiopian Herald)