Dive Summary:

• The FAO Food Price Index, a measure of global food prices, remained steady in January at 210 points.
• Although fat and oil prices went up, a decrease in cereal and grain prices allowed overall prices to remain steady.
• This, of course, is a median measure, as grain prices are still very high in teh U.S. thanks to the still ongoing drought in the souther plains region. 

From the article:

Early prospects for 2013 cereal production point to increased world wheat output. Contributing largely to this prospect is an estimated 4-5% increase in the area under wheat in the European Union, where weather conditions have also been generally favourable so far.

But in the US, the outlook is less favourable. Despite an estimated 1% increase in winter wheat plantings and prospects for spring wheat areas to expand, severe drought conditions continue to plague the southern Plains, where the condition of crops is reported to be very poor.