Prices of corn, wheat and other grains can go much higher and current weather patterns are of concern, the United Nations' food agency said on Wednesday after announcing a record high for its food price index in December, according to Reuters. The FAO's food price index, which measures monthly price changes for a food basket composed of cereals, oilseeds, dairy, meat and sugar, averaged 215 points last month, up from 206 points in November. That level, fuelled by soaring sugar prices and strength in cereals and oilseeds, was the highest since records began in 1990, and topped the high of 213.5 in June 2008, during a food crisis which sparked riots in some countries. Food and Agriculture Organisation's economist Abdolreza Abbassian told Reuters the FAO was concerned by the unpredictability of current weather activity. "There is still room for prices to go up much higher, if for example the dry conditions in Argentina tend to become a drought, and if we start having problems with winterkill in the northern hemisphere for the wheat crops," he said. Winterkill occurs when cold attacks plants seeded, generally in the autumn, for harvesting the following year. -- SPA
