Cereal crop prospects for 2013 excellent but stocks tight-FAO

Source: Thomson Reuters Foundation - Thu, 7 Feb 2013 09:58 GMT
Author: Reuters
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ROME, Feb 7 (Reuters) - Global cereals crops are expected to be excellent in 2013 unless weather turns very bad, but stocks are tight and climate-related shocks could cause prices to spike up violently, a senior economist at the U.N.'s Food agency said on Thursday.

"We should be expecting excellent crops in 2013 which could weigh heavily on prices," said Abdolreza Abbassian, a senior economist at the Food and Agriculture Organisation (FAO).

"But the weather could turn negative, and because we are in a tight situation, prices could react violently and rise," he said.

(Reporting By Catherine Hornby)