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FAO predicts soybean and corn prices on top

March 26, 2012

 

The Food and Agriculture Organization of the United Nations, known as FAO, confirmed on this Monday that the prices for the most important grains would not get lower so soon. This situation is mainly caused by the huge crop failure on South America and by the strong demand of the Asian countries.
 
The offer for China, for example, reduced when the problems started in South America. Besides of that, Chinese middle class is eating more meet, which needs corn and soybean meal to be produced. Just the weather could change something in a short period of time.
 
"On this month and next, prices will probably stay like this, on top. What happens next will depends on the weather and the crops development", said the organization to the news agency Reuters.
 
The United Nations had expected a decrease on grains prices, because of Argentina's harvest, but the drought season on site made that impossible. "If the Chinese feel that corn prices could increase, they could surprise us and buy more, which would increase prices for sure. That could lead us to a panic buys", finished FAO.

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