Worries about rising food prices may ease
<p><span word="A">A</span> <span word="United">United</span> <span word="Nations">Nations</span> <span word="report">report</span> <span word="says">says</span> <span word="world">world</span> <span word="food">food</span> <span word="prices">prices</span> <span word="stayed">stayed</span> <span word="the">the</span> <span word="same">same</span> <span word="in">in</span> <span word="August">August</span>. <span word="Prices">Prices</span> <span word="were">were</span> <span word="unchanged">unchanged</span> <span word="after">after</span> <span word="rising">rising</span> <span word="sharply">sharply</span> <span word="in">in</span> <span word="July">July</span>.</p><p><span word="A">A</span> <span word="summer">summer</span> <span word="of">of</span> <span word="drought">drought</span> <span word="in">in</span> <span word="the">the</span> <span word="United">United</span> <span word="States">States</span> <span word="and">and</span> <span word="Russia">Russia</span> <span word="has">has</span> <span word="reduced">reduced</span> <span word="expectations">expectations</span> <span word="for">for</span> <span word="corn">corn</span> <span word="and">and</span> <span word="wheat">wheat</span> <span word="supplies">supplies</span>. <span word="As">As</span> <span word="a">a</span> <span word="result">result</span>, <span word="a">a</span> <span word="measure">measure</span> <span word="of">of</span> <span word="food">food</span> <span word="prices">prices</span> <span word="by">by</span> <span word="the">the</span> <span word="U">U</span>.<span word="N">N</span>. <span word="Food">Food</span> <span word="and">and</span> <span word="Agriculture">Agriculture</span> <span word="Organization">Organization</span> <span word="rose">rose</span> 6% <span word="in">in</span> <span word="July">July</span>. <span word="But">But</span> <span word="FAO">FAO</span> <span word="economist">economist</span> <span word="Concepcion">Concepcion</span> <span word="Calpe">Calpe</span> <span word="says">says</span> <span word="the">the</span> <span word="expected">expected</span> <span word="reductions">reductions</span> <span word="did">did</span> <span word="not">not</span> <span word="get">get</span> <span word="any">any</span> <span word="worse">worse</span> <span word="in">in</span> <span word="August">August</span>.</p><p><span word="CONCEPCION">CONCEPCION</span> <span word="CALPE">CALPE</span>: "<span word="We">We</span>'<span word="re">re</span> <span word="not">not</span> <span word="in">in</span> <span word="a">a</span> <span word="bad">bad</span> <span word="situation">situation</span>, <span word="or">or</span> <span word="as">as</span> <span word="bad">bad</span> <span word="situation">situation</span> <span word="as">as</span> <span word="we">we</span> <span word="were">were</span> <span word="last">last</span> <span word="month">month</span> <span word="because">because</span> <span word="the">the</span> <span word="prospects">prospects</span> <span word="are">are</span> <span word="not">not</span> <span word="worsening">worsening</span> <span word="further">further</span>. <span word="And">And</span> <span word="this">this</span> <span word="is">is</span> <span word="already">already</span> <span word="good">good</span> <span word="news">news</span>."</p><p><span word="Ms">Ms</span>. <span word="Calpe">Calpe</span> <span word="says">says</span> <span word="the">the</span> <span word="FAO">FAO</span> <span word="price">price</span> <span word="index">index</span> <span word="remains">remains</span> <span word="about">about</span> 10% <span word="below">below</span> <span word="its">its</span> <span word="highest">highest</span> <span word="level">level</span>, <span word="reached">reached</span> <span word="in">in</span> <span word="February">February</span> 2011. <span word="But">But</span> <span word="prices">prices</span> <span word="are">are</span> <span word="still">still</span> <span word="twice">twice</span> <span word="as">as</span> <span word="high">high</span> <span word="as">as</span> <span word="they">they</span> <span word="were">were</span> <span word="ten">ten</span> <span word="years">years</span> <span word="ago">ago</span>.</p><p><span word="Demand">Demand</span> <span word="remains">remains</span> <span word="high">high</span> <span word="for">for</span> <span word="food">food</span> <span word="commodities">commodities</span> <span word="like">like</span> <span word="maize">maize</span> <span word="and">and</span> <span word="wheat">wheat</span>. <span word="The">The</span> <span word="U">U</span>.<span word="N">N</span>. <span word="estimates">estimates</span> <span word="that">that</span> <span word="more">more</span> <span word="cereal">cereal</span> <span word="crops">crops</span> <span word="will">will</span> <span word="be">be</span> <span word="consumed">consumed</span> <span word="this">this</span> <span word="year">year</span> <span word="than">than</span> <span word="will">will</span> <span word="be">be</span> <span word="produced">produced</span>. <span word="That">That</span> <span word="means">means</span> <span word="markets">markets</span> <span word="will">will</span> <span word="have">have</span> <span word="to">to</span> <span word="use">use</span> <span word="some">some</span> <span word="of">of</span> <span word="the">the</span> <span word="supplies">supplies</span> <span word="that">that</span> <span word="have">have</span> <span word="been">been</span> <span word="kept">kept</span> <span word="in">in</span> <span word="reserve">reserve</span>. <span word="Concepcion">Concepcion</span> <span word="Calpe">Calpe</span> <span word="says">says</span> <span word="those">those</span> <span word="reserves">reserves</span> <span word="have">have</span> <span word="been">been</span> <span word="low">low</span> <span word="for">for</span> <span word="several">several</span> <span word="years">years</span>.</p><p><span word="CONCEPCION">CONCEPCION</span> <span word="CALPE">CALPE</span>: "<span word="And">And</span> <span word="therefore">therefore</span> <span word="we">we</span> <span word="are">are</span> <span word="very">very</span> <span word="much">much</span> <span word="susceptible">susceptible</span> <span word="to">to</span> <span word="very">very</span> <span word="quick">quick</span> <span word="changes">changes</span> <span word="because">because</span> <span word="there">there</span> <span word="is">is</span> <span word="very">very</span> <span word="little">little</span> <span word="buffer">buffer</span> <span word="on">on</span> <span word="which">which</span> <span word="to">to</span> <span word="rely">rely</span> <span word="to">to</span> <span word="protect">protect</span> <span word="ourselves">ourselves</span> <span word="should">should</span> <span word="there">there</span> <span word="be">be</span> <span word="another">another</span> <span word="bad">bad</span> <span word="news">news</span> <span word="on">on</span> <span word="the">the</span> <span word="production">production</span> <span word="front">front</span>."</p><p><span word="She">She</span> <span word="says">says</span> <span word="there">there</span> <span word="will">will</span> <span word="be">be</span> <span word="ups">ups</span> <span word="and">and</span> <span word="downs">downs</span> <span word="in">in</span> <span word="prices">prices</span> <span word="until">until</span> <span word="production">production</span> <span word="meets">meets</span> <span word="the">the</span> <span word="level">level</span> <span word="of">of</span> <span word="demand">demand</span>. <span word="Still">Still</span>, <span word="many">many</span> <span word="experts">experts</span> <span word="do">do</span> <span word="not">not</span> <span word="expect">expect</span> <span word="a">a</span> <span word="repeat">repeat</span> <span word="of">of</span> <span word="the">the</span> <span word="crisis">crisis</span> <span word="of">of</span> <span word="two">two</span> <span word="thousand">thousand</span> <span word="seven">seven</span> <span word="and">and</span> <span word="two">two</span> <span word="thousand">thousand</span> <span word="eight">eight</span>. <span word="Prices">Prices</span> <span word="jumped">jumped</span>, <span word="playing">playing</span> <span word="a">a</span> <span word="part">part</span> <span word="in">in</span> <span word="civil">civil</span> <span word="unrest">unrest</span> <span word="in">in</span> <span word="several">several</span> <span word="countries">countries</span>.</p>
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