The threat of food inflation, a serious concern for emerging countries last year, is starting to recede as high prices for grains restrain consumption and better crop yields in Europe and Russia replenish stocks, reports the FT. The UN’s Food and Agriculture Organisation said on Thursday its food index had fallen last month to its lowest level in more than a year, reflecting reduced inflation across Asia. At the same time, the US reported that its domestic production and stocks of corn, a key commodity for the global food chain, were higher than previously thought, sending prices sharply down. Benchmark corn futures fell by their daily maximum limit to a three-week low of $6.11½ a bushel, down more than 6 per cent. Wheat, which had previously been supported by expectations of low corn stocks, fell 5.6 per cent.

This entry was posted by Kate Mackenzie on Friday, January 13th, 2012 at 4:18 and is featured in The 6am Cut London (13 Jan 2012) . Tagged with Corn, soft commodities, wheat futures. Edit this entry.