/ Source: The Associated Press
The U.N. food agency says world food prices remained virtually unchanged last month, but that cereal prices rose amid concerns that production won't satisfy demand.
The Rome-based Food and Agriculture Organization said Thursday that its price index was 26 percent higher than in August 2010 but well below the all-time high in February and unchanged between July and August.
The maize supply "is a cause for concern," FAO said, noting the hot weather in the United States that has prompted downward revisions of maize crop prospects.
World cereal production this year is expected to reach 2,307 million tons, but that's 6 million tons lower than a July forecast and isn't considered sufficient to meet increased demand.