Food prices likely to decrease with greater supplies

March 10, 2011

The Associated Press

The government estimates corn and soybean reserves will be higher than initially estimated. That should ease some concerns about rising food prices. The U.S. Agriculture Department predicts there will be about 122.5 million metric tons of corn left over after this year's harvest, up from an estimated 123.1 metric tons in last month's estimate. There should be about 58.2 million metric tons of soybeans left over, compared with last month's estimate of 58.3 million. Lower reserves caused global grain prices to double this year. The government estimates that food prices could rise more than 3 percent this year as processed food makers and grocery stores pass along their higher costs for raw ingredients.