DigitalJournal.com - File photo In 2006, one-fifth of US corn production was used for ethanol. Land used to grow wheat and soybeans is being turned over to grow corn. image:30763:1::0

The Food and Agriculture Organization (FAO) has advised that April saw a drop in food prices as its food price index fell to 216.7 from 217.0 in March, having surged from last April's figure of 141.7.

The FAO advises caution but says that it is time for a bit of optimism as far as food prices go.

Others disagree, saying that many of the factors that have boosted food prices had not gone away.

"Since the beginning of May, there have been some positive signs, especially coming from the wheat crop prospects, which are very good," Abdolrea Abbasian from the FAO told the BBC.

"Overall, I think as time goes on, we are getting a little bit optimistic," he added.


"It is dangerous to look at just one month, especially when the underlying factors remain the same," Joel Segal from Ernst & Young said.

Factors such as population growth still outstripping food production, increased affluence pushing up meat consumption, and the use of grain for biofuels are still in play.