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The United Nations on Thursday reported food prices eased in April after steadily rising in 2012's first quarter.
However, global soybean price increases remained a top concern at the U.N. Food and Agriculture Organization (FAO).
In a conversation with Reuters, FAO economist and grain analyst Abdolreza Abbassian explained:
"We expect global food prices to remain under downward pressure this year unless there are any unexpected shocks to the supply side, such as unfavorable weather. For such reasons, it is very hard to predict for sure in what direction prices will move.
The only real area that could trigger food price increases would be soybeans which we see in tight supply, then pushing up corn prices as a result."
But Abbassian understates the most important issue in the food markets.
You see, Abbassian implies that food prices remain "somewhat" susceptible to outside volatility in the currency and energy markets.
In fact, this view is focusing on the short-term. It's ignoring the sector's most pressing long-term concerns
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