EU agriculture chief expects world food prices to stabilize, but warns against speculation

The European Union's agriculture chief said Monday she expects world food prices to stabilize below peak levels, but warned that speculation has been a leading cause of increases and could fuel further instability.

"We saw some huge peaks (in prices) from late August, September and October," EU Agriculture Commissioner Mariann Fischer told reporters in Warsaw. "They might come back to a certain extent, but we expect that prices will stabilize at a level that is a bit below the peaks that we have seen."

However, Fischer warned of the threat from speculation on prices, saying it "has had a huge consequence on the increase in cereal prices that we have seen."