Grains up, but prices pressured: FAO

World cereals output is expected to rise to a new record in 2011 due to more planting and improved yields but low stocks are set to keep prices high and volatile, the United Nations’ food agency said.

World cereals output is expected to rise to a new record in 2011 due to more planting and improved yields but low stocks are set to keep prices high and volatile, the United Nations' food agency said.

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Global cereals output is expected to rise 3.5% to 2.315 billion tonnes this year, recovering after a 1% fall in 2010, the UN Food and Agriculture Organisation (FAO) said on Tuesday in its first estimate of 2011 total global crops.

World wheat output is seen rising 3.2% to 674 million tonnes this year, down from an earlier forecast of 676 million due to unfavourable weather in North America and parts of Europe.

Weather in the coming months remains critical for shaping final crop outcomes, the agency said.