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Global Food Prices Rose 57% in March From Year Ago, FAO Says

By Shruti Date Singh

April 8 (Bloomberg) -- Global food prices extended their run up, increasing 57 percent last month from a year earlier, the United Nations Food and Agriculture Organization said.

The FAO Food Price Index averaged 220 points last month, as much as 80 points more than in March 2007, the organization said on its Web site. The rise comes from higher meat and grain prices, including rice, corn and wheat, FAO noted.

``Prices of nearly all food commodities have risen since the beginning of the year, supported by a persistent, tight supply and demand situation,'' FAO said. The recent gains in meat prices ``mostly reflect the continued surge in feed prices.''

For grains, the FAO said, ``tight supplies continue to provide support to the prices of most cereals.''

Prices of dairy products moderated from a year earlier, with an index that includes butter and milk powder falling 6 percent from a November high, the FAO said.

The index rose 1.4 percent from a month earlier, when the annual rate of increase was 56 percent.

Rice and wheat futures traded on the Chicago Board of Trade both have doubled in the past year. Corn has risen 62 percent in the past 12 months.

To contact the reporter on this story: Shruti Date Singh in Chicago at ssingh28@bloomberg.net.

Last Updated: April 8, 2008 19:14 EDT

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