Global food prices fall in December

World food prices in December continued to retreat from February’s record high, the UN Food and Agriculture Organization reported Thursday.

The Rome-based FAO said its Food Price Index averaged 211 points in December. That was a 2.4 per cent drop from November and 11.3 per cent less than last year’s peak.

The index tracks changes in the prices of 55 commodities.

The FAO said bumper crops in several commodities combined with slowing demand and a stronger U.S. dollar led to sharp drops in the international prices of cereals, sugar and oils.

Still, it said the annual average for 2011 was a record high.

In December, cereal prices fell 4.8 per cent, the oils and fats index was lower by three per cent, meats were down slightly, dairy products were unchanged and sugar fell four per cent.

The data was released less than two weeks after the new head of the FAO, Jose Graziano da Silva, took over his duties with a prediction that food prices would remain volatile in 2012 — and more people would go hungry.

High food prices contributed to the unrest of the Arab Spring early last year and raised fears of a repeat of the food price crises in 2007 and 2008.

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Gasoline prices spike as Irene nears

Retail gasoline prices in the New York area rose sharply Friday, as Hurricane Irene threatened to roll over the city on Sunday.

Price tracking website GasBuddy.com showed many areas of the city, Long Island and Connecticut where gasoline was selling for more than $3.90 US a gallon, 30 cents higher than the national average.

Consumers were filling up as reports suggested refineries along the U.S. east coast will likely close. There are 10 refineries in the area that could be affected, responsible for more than seven per cent of total U.S. capacity.

Gasoline futures climbed on the New York Mercantile Exchange yesterday, closing with a gain of 4.59 cents, or 1.6 per cent, to end at $2.80 US a gallon.

With no companies announcing any closures, gasoline had given back some of that gain Friday, to close at $2.78.

The National Hurricane Center downgraded Irene to a Category 2 storm Friday morning and by 2 p.m. ET reported that its maximum winds had decreased to 155 km/h as it came within 500 kilometers of Cape Hatteras. It is forecast to affect a broad area, from North Carolina to Eastern Canada, with flooding and winds as high as 190 km/h.

Traders on the Nymex, shown in March, pushed gasoline futures higher by almost two per cent on Thursday. Mark Lennihan/Associated Press

Some forecasters think Irene could be the worst hurricane to hit the U.S. Northeast in 50 years.

Refineries are already starting to turn off equipment and tie things down.

"Even if the storm eventually misses them, they can't take chances," says Ben Brockwell at the Oil Price Information Service, which monitors fuel shipments around the country.

Refineries are sprawling complexes of concrete and steel that turn oil into gasoline, diesel and other kinds of fuels. While the main buildings are designed to withstand hurricane-force winds and earthquakes, some of their pipes, cooling towers and power lines are susceptible to wind damage.

Utilities are expecting widespread power outages from winds and downed trees.

It takes several days for a refinery to start operating again following a shutdown. And many would need almost a month to get back to full operation.

Tom Bentz, an analyst at BNP Paribas Commodity Futures, said traders are betting that supplies may be squeezed.

"There's the potential for certainly coastal flooding, potential for refinery outages, potential for shipping delays, things like that," Bentz says.

With files from The Associated Press Accessibility Links

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Rice prices soaring as wholesalers increased inventories

In Japan, in 2010, the harvested rice prices have increased sharply, trading between wholesalers: Fukushima Prefecture on the crisis in the field of nuclear energy is the future of their concern about the stocks of any shortages, according to market watchers.Bind to a data bank for rice co., said in the Prefecture of Akita Akitakomachi rice produced brand market research quoted ¥ 60 per kg, 18,700 last Wednesday 49,6% of its high ¥ 9. March, Carrying 12,500 range from two days before the quake and tsunami crippled Fukushima No. 1 nuclear power plant.Niigata Prefecture in rice limited jumped 40.6%, to ¥ 27,000 for price rises reflect ... The lack of available rice wholesalers under the name area of the Chuetsu Koshihikari brand will increase deliveries to farms, supermarkets and other mass retailers. They fear, the restrictions on the transfer of the rice crops may be set in the Tohoku region and determining if the radioactive material is found to exceed the data bank for rice, the official said.Between the wholesalers '. the breakdown of rice itself only in retail are not likely to grow strongly in mass retailers who acquire rice, at a fixed price purchase long-term contracts with wholesalers: at.But the small retailers begin to complain about the difficulty rice popular brands.Prices may still rise to wholesalers, until this year, the plants were harvested, and the presence of radioactive substances is specified in the trade between market watchers said.

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