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The USDA slashed its forecast for Argentina’s corn and soybean production in response to widespread drought and raised its prediction for Chinese wheat imports in its April World Agricultural Supply and Demands Estimate.

Declining prices for cereals and vegetable oils helped drive world food commodity prices down for the 12th straight month, the Food and Agriculture Organization of the United Nations said Friday.

USDA Chief Economist Seth Meyer says a drive to diversify revenue streams through the growth of climate-smart commodities has potential but also needs to be better understood from an economic standpoint.

An index of global food commodity prices dropped for the 10^th straight month in January on declines in the cost of vegetable oils, dairy products and sugar.

Grocery prices rose 0.2% in December, driven in part by another spike in the cost of eggs and an increase in beef prices that helped offset declines in many other categories.

New figures in the monthly Consumer Price Index show grocery prices increased 0.5% in November despite declines in beef, pork and poultry prices.

Rising production costs were offset by higher commodity prices in 2022, USDA said in its latest forecast, which predicts a jump in net farm income of 13.8% for this year.