The FAO Food Price Index, a benchmark indicator of global food price developments, remained virtually unchanged in March from its revised February reading, as lower global cereal and sugar quotations offset sharp increases in vegetable oil prices.
Food commodity markets are becoming more balanced and less price volatile than in recent years thanks to improved supplies and a recovery in global inventories of cereals, according to FAO's Food Outlook report published on Friday.
Despite improved production prospects, world cereal markets are likely to remain fairly tight in 2011/2012, FAO announced this week. Prices on the other hand will tend to decline as a result of softer demand because of worsening economic conditions.