ISTANBUL (Reuters) - The head of the U.N.'s Food and Agriculture Organisation (FAO) said on Thursday there was no need for panic over global food prices and said a U.S. report on Wednesday on the outlook for its corn crop had sent a "very good message".

"There is no reason for panic," FAO Director-General Jose Graziano da Silva told a conference in Istanbul.

The U.S. Department of Agriculture on Wednesday cut its forecast for the country's corn crop by less than 1 percent, indicating the worst drought in U.S. Midwest in 56 years may have done less damage than anticipated.

(Reporting by Can Sezer; Writing by Nick Tattersall; Editing by Alison Birrane)