FAO: High agricultural commodity prices to continue

High and volatile agricultural commodity prices are likely to prevail for the rest of this year and into 2012, according to the latest analysis in the FAO’food Outlook.

The report cites a sharp rundown on inventories and only modest overall production increases for the majority of crops as reasons for continuing strong prices.

The next few months will be critical in determining how the major crops will fare this year, the report notes. Although prospects are encouraging in some countries, such as the Russian Federation and Ukraine, weather conditions featuring too little or too much rain could hamper maize and wheat yields in Europe and North America. Read more of this post