Prices of food and vegetable oilseeds and oils
surged in mid-2012 as a result of reduced supplies
caused by weather-related events, most notably the
worst drought in the United States in half a century.
Food crops were also adversely affected by unfavourable
climatic conditions in the B lack Sea area
and in Australia. While the increase in the prices of
food commodities such as corn, wheat and soybeans
was alarming, a food crisis was avoided mainly
because rice, which is critical for food security, was
not affected, and countries refrained from imposing
trade restrictions. Food prices fell in the second part
of the year owing to better supply prospects. After the
tight markets and high prices of 2012/2013, forecasts
for 2013/14 point to a better world cereal supply and
demand balance (FAO, 2013). With good prospects
for production and replenishment of stocks, prices
should ease. This is not the case, however, for soybeans,
which, in mid-2013, recorded a rise in prices
resulting from tight supplies and low inventories,
particularly in the United States.