The World Bank: Global food prices have declined, yet grain market remains tense

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According to a recent report by the World Bank (WB), during the third quarter world food prices decreased by 6%, reported the UN News Centre.
However, the global grain market remains tense.

According to a recent report by the World Bank (WB), during the third quarter world food prices decreased by 6%, reported the UN News Centre.
However, the global grain market remains tense.
The experts fear that weather-related problems in Brazil, Paraguay, Argentina, Ukraine and Russia Federation may lead to a further increase in wheat prices in the next few months. The World Bank notes that domestic food prices vary considerably from country to country, due mainly to seasonal trends, but also due to combination of factors such as adverse weather conditions, public procurement policies, local supply shortages and currency devaluations. "The steady decrease in prices may be welcomed- we have what to rejoice," - said World Bank Sector Director, Ana Revenga.
"However, these achievements are unstable. Persistent concerns about the erratic weather conditions or currency exchange rates do not allow us to declare victory over food prices. We must continue to pay close attention to this issue, as if these fears materialize, the current progress can quickly come to nothing ,"- said Ana Revenga.
According to a recent report  of the World Bank, in October 2013 food price index was 12% lower than a year ago and 16% below the peak level reached in August 2012. In 2013, the volume of new lending resources, commitment by the group organization of the World Bank for projects in the field of agriculture and related industries amounted to $ 8 billion. Aid to agriculture and related industries have grown from an average of 9% of total lending in the 2010-2012 financial years to 12% in fiscal 2013.