High Food Prices for the Next Decade

Sat May 31 21:26:00 -0700 2008
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The Food and Agricultural Organization of the UN has issued a new report on commodities with a basic prediction that high prices for food products will persist over the next decade, although there should be some easing soon from extreme peaks. They caution though that even with a slight easing, there could be unexpected volatility because of the nature of the global markets,and a huge number of the world's poor will still be negatively effected by these price increases.

.."Prices may also become more volatile because stock levels are expected to remain low and as some of the demand for agricultural commodities becomes less responsive to price changes. The recent increase in investment funds on commodity futures markets might also become an additional factor in price variability. Climate change, too, would affect crop production and supply in unforeseen ways."