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Food Price Monitoring and Analysis (FPMA) Bulletin #2, 13 March 2024

Monthly report on food price trends











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    After edging down for the past three months, international prices of wheat firmed marginally in February, mostly reflecting strong demand and concerns over dry weather conditions in some major exporters. World maize prices were nearly unchanged in February, with mixed price trends among the major exporters. International rice prices eased in February, amid exchange rate movements and a slowdown in trading activities in most major Asian exporters. Latest analysis by FAO shows that domestic staple food prices generally remained at elevated levels in February 2023. Seasonal factors and price transmission from the recent weakening of international grain prices supported month‑on‑month declines in some staple food prices in parts of East Asia, South America, Southern Africa and West Africa. Nonetheless, in many countries, conflict, adverse weather events and macroeconomic challenges, particularly currency weakness, continue to drive up local prices.
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    International wheat and coarse grain prices declined in January 2024 as large seasonal supplies exerted downward pressure on prices. By contrast, the FAO All Rice Price Index increased by 1.2 percent in January, largely reflecting increases in Indica quotations. FAO’s analysis of domestic staple food prices shows that high price levels persisted in December 2023 and January 2024. In most countries, domestic staple food prices remained elevated due to multiple factors, including conflicts, insecurity and extreme weather events, which constrained food availability and access. Currency weakness remains a compounding factor tightening supply, especially in net food importing countries, through reduced imports due to financial constraints and increasing debt burdens.
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    Global wheat and maize prices continued to increase in October 2024, influenced by unfavourable weather concerns in some main producing areas, transport disruptions and strong demand. By contrast, international rice prices declined, amid expectations of increased competition among exporters. FAO’s analysis of the latest available domestic food price data showed prices were below year-earlier levels, in September and October 2024, in parts of Central America and Far East Asia, owing to increased seasonal availability from harvests. Staple food prices remained high year-on-year in parts of East Africa, Southern Africa and South America due to tight domestic supplies, macroeconomic challenges and sustained demand. In West Africa, coarse grain prices hit new record highs in several markets as recent widespread flooding impeded the functioning of markets, further exacerbating existing food access challenges.

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