No supply crisis, just more volatility is what the world can expect from grain markets, a senior UN official said Tuesday in Rome in comments published on the Food and Agriculture Organization's (FAO) website.

The comments by Hafez Ghanem appear to be an attempt to clear up confusion which followed the FAO's latest market forecast issued late last month. The FAO said at that time there was no crisis on grain markets. Then the head of the organization called extraordinary sessions of the FAO's special grain committees for later this month to examine grain markets.

The FAO worry, like that of others is that short stocks of some grains, particularly wheat, amplified by decisions from governments like Russia's to suspend exports could lead to supply problems. There is no reason for that worry at present, the FAO said September 7.

"The market fundamentals are sound and very different from 2007-2008," said Ghanem, assistant director-general for economic and social development at the Italian based FAO.

"Despite the shortfall in Russia's wheat production, this year's cereal harvest was the third highest on record and stocks are high. Under these conditions we don't believe that we are headed for a new food crisis, but we will continue monitoring the situation closely," he continued. "So as to regards of the overall supply and demand situation there's no cause to worry. The picture could, however, change if there is another shock to supply, for example due to more bad weather, or if government policies lead to increased anxiety in the market, provoking panic buying."