The Food and Agriculture Organization of United Nation, hereinafter referred to as FAO, said in the November 17th World Food outlook report that

FAO said that under the pressure of rising prices for most commodities,

The report said that due to the direct effect of bad weather, 1.2% of the projected growth in June this year, global grain production is expected to decline by 2%.

At the same time, global grain inventories are expected to be reduced by 7%, of which barley is down 35%, corn 12% and wheat 10%. Only rice stocks are expected to increase by 6%. FAO strongly calls for production follow-up to replenish inventory.

Based on the expected shortage of stocks, grain production next year will be crucial to the international market.

Several major grain yields must be fully increased to meet demand and restore reserves.

FAO also expects farmers to expand their planting area due to the general increase in prices.

But prices of soybeans, sugar, cotton and other commodities are also attractive. Grain may not be the only type of farmers that want to increase production, so a single increase in production will be limited, not enough to link market tensions.

Based on this, consumers can only pay for rising food prices.

The report stressed that a series of factors such as unforeseen bad weather, policy intervention in some exporting countries and fluctuations in the money market contributed to the increase in grain prices in the past 6 months.

If corn, soybean and wheat output did not increase significantly in 2011, international grain prices will continue to rise.

Although rice is abundant, prices may also be pushed up by other grain prices.

Sugar is also a major factor in the rise in food prices in recent months. According to FAO, sugar prices, which have been recorded for 30 years, are still rising.

The price of the oilseed plate reflects relatively slow growth in production, which is difficult to cope with the expansion of demand. Meat prices are also rising, but so far the gains are still small.

Dairy plates, cheese prices hit a record high.

The sharp decline in prices in 2008 led to a significant reduction in aquaculture output, and fish prices began to recover and began to grow significantly.

FAO said that although global exports are close to the peak in 2008, the supply in 2011 will be more abundant than in 2008, as compared with the sufficient grain reserves in 2008.

However, the rate of price rise has exceeded the level of 2008.