12 December 2000
FAO predicts tighter cereal market

WORLDWIDE cereal markets are likely to tighten in 2001, but prices are likely to remain weak, reports the Financial Times.

United Nations world food body, the Food and Agriculture Organisation, says erratic weather will have a big impact on plantings, output and prices.

The FAO latest Food Outlook report estimated a 1.7% drop in world cereal output to 1.85 billion tonnes in 2000.

It predicts this will be well below expected utilisation and demand will tighten.

But a FAO spokesman said the organisation did not foresee a sharp increase in prices.