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Wheat sends food prices up
Surging wheat prices drove international food prices up by five per cent last month, according to the Food and Agriculture Organization's Food Price Index.
wheat field
The United Nations agriculture agency says this is the biggest month-on-month increase since November.
In its latest update on the global cereals supply and demand situation the agency points out that the increase in wheat prices followed drought in Russia and the country's subsequent restrictions on wheat sales.
The agency also points out that there were other drivers, including higher sugar and oil seed prices.
The FAO's update says that the forecast for world cereal production in 2010 has been lowered by over 40 million tonnes from close to 2.3 billion reported in June.
However, the agency says that even at this lower level, world cereal output in 2010 will be the third highest on record and above the five-year average.
It says that under the present forecast, world cereal utilization is expected to slightly exceed production in 2010 and 2011.
Gail Walker, United Nations Radio
(duration: 1'08")
