This in spite of steady declines in most food prices over recent months.
Over October the index declined a further 4%, to 216 points, led by cereals, food oils, sugar and dairy products. In spite of some evidence of improving stability in some supply sectors, in general food prices around the world continue to be extremely volatile, according to FAO.
The best news was in the cereal sector where 2011 harvests show a return to good supply across all grains, with a resulting stability in prices that has not been seen for some time. The FAO outlook for cereal production for 2011 is 2325 million tonnes, a 3.7% increase in volume over 2010.
Leading the increase is wheat, which is predicted to yield 6% more than last year. Rice, too, is looking positive in spite of some losses to flooding in South East Asia, with a predicted yield 3.54% above 2010.
A bumper year for sugar producers has also sent prices in that sector down, with inventories expected to end the year well ahead of what they were in 2010.
While meat prices continue to hold relatively steady, declining slower than other commodity prices, dairying has also delivered a sharp price decline, falling steadily throughout the year, while still ending higher than in 2010.
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