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MANILA/MILAN (Reuters) – World food prices hit a record in January and recent catastrophic weather around the globe could put yet more pressure on the cost of food, an issue that has already helped spark protests across the Middle East.
Up for the seventh month in a row, the closely watched Food and Agriculture Organization Food Price Index on Thursday touched its highest since records began in 1990, and topped the peak of 224.1 in June 2008, during the food crisis of 2007/08.
“The new figures clearly show that the upward pressure on world food prices is not abating. These high prices are likely to persist in the months to come,” FAO economist and grains expert Abdolreza Abbassian said in a statement.
Surging food prices have come back into the spotlight after they helped fuel the discontent that toppled Tunisia’s president in January and have spilled over to Egypt and Jordan, raising expectations other countries in the region would secure grain stocks to reassure their populations.
World Bank President Robert Zoellick urged global leaders to “put food first” and wake up to the need to curb increased price volatility.
“We are going to be facing a broader trend of increasing commodity prices, including food commodity prices,” he told Reuters in an interview.
SUPPLY THE KEY
A series of weather events hitting key crops is likely to keep up the pressure on food prices as a massive cyclone batters Australia, a major winter storm ravages U.S. crop belts and flooding hits key commodity producer Malaysia.
National Australia Bank agribusiness economist Michael Creed said food markets may take a while to regain equilibrium.

“The broadbased nature of what crops have been wiped out over the past year means that it’s going to take a while to actually rebuild and get production back in line with consumption,” he said.
White sugar futures hit a record high and raw sugar futures rose to their highest in more than 30 years on fears of the damage Cyclone Yasi would bring to the Australian cane crop.
The worst winter storm for decades in the United States drove wheat futures to the highest in nearly 2-1/2 years, and Malaysian palm oil prices are at 3-year highs as flooding hit crops.

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