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Stockpiling keeps pressure on food prices: FAO

Global food prices are likely to remain close to record highs hit in February until the condition of new crops is known, United Nations' Food and Agriculture Organization (FAO) economist told Reuters on Thursday.
/ Source: Reuters

Global food prices are likely to remain close to record highs hit in February until the condition of new crops is known, United Nations' Food and Agriculture Organization (FAO) economist told Reuters on Thursday.

"Until we know about new crops, that means waiting at least until April, our view is don't expect any major corrections in these high prices, expect even more volatility now that oil has joined the crowd," Abdolreza Abbassian said in a telephone interview.

An earlier announced rise in global food prices to record highs in February was driven mostly by external factors, such as oil, currency and political instability, he said.

Stockpiling by some major grain importers seeking to head off political unrest, has been adding uncertainty and volatility to the markets, Abbassian said.