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FPMA Bulletin #2, 9 March 2018

Monthly Report on Food Price Trends











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    International prices of wheat and maize fell in June despite generally worsening production prospects. By contrast, in rice markets, higher quotations of Japonica and fragrant rice outweighed declines in Indica rice prices. In East Africa, prices of grains in the Sudan remained at record highs in June due to concerns that 2018 plantings would be reduced by shortages and high prices of fuel and inputs, as well as a sharp depreciation of the local currency and the removal of subsidies. Similarly, a continuing currency depreciation, coupled with tight supplies and insecurity, contributed to keeping food prices at exceptionally high levels in South Sudan. In Central America, prices of white maize continued to increase seasonally in June, particularly in Nicaragua, where the ongoing social unrest contributed to push them to near-record highs. In South America, prices of yellow maize remained stable and well above their year-earlier levels in Argentina and Brazil, despite the ongoing 2018 maize harvests, mainly due to expectations of reduced outputs. Price of wheat continued to increase due to seasonally tight supplies and weakening currencies stimulating exports.
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    International prices of wheat and maize rose further in May, mainly underpinned by weather-driven concerns over production prospects in key producing countries. International prices of rice remained firm, with upward pressure from sizeable purchases by Southeast Asian buyers largely offset by weaker currencies in key exporting countries. In East Africa, in the Sudan, prices of staple foods: millet, sorghum and wheat increased sharply in May, after faltering in the past two months and reached record highs. The recent increases reflect concerns over the performance of the 2018 harvest, which compounded upward pressure from a weak currency and the removal of wheat subsidies. In South America, prices of yellow maize and wheat continued to increase in key producers and exporters, Argentina and Brazil, reaching levels well above those in May last year and exerting upward pressure on prices in importing countries of the subregion. Prices of maize were mainly underpinned by sliding currencies and expectations of reduced outputs this year, while those of wheat were supported by seasonal pressure compounded mostly by the weaker currencies. In Central America, in Nicaragua, prices of white maize continued to increase sharply in May, with seasonal upward pressure exacerbated by higher fuel costs and ongoing social unrest. In general, prices of maize in the subregion were at levels well above those in May last year.
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    Journal, magazine, bulletin
    FPMA Bulletin #4, 10 May 2018
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    International prices of wheat and maize in April were generally higher, supported by weather concerns in key producing countries and brisk trade. International prices of rice increased in response to renewed import demand in Asia. In East Africa, in the Sudan, prices of staple foods, millet, sorghum and wheat, remained firm or increased in April and were at record or near-record highs, underpinned by a weak currency, the removal of wheat subsidies and increased transport costs. In Central America, prices of white maize increased sharply in March and April and reached levels well above those a year earlier in most countries of the subregion. Seasonal upward pressure was supported by higher purchasing prices from the milling industry, trends in the international market and increased fuel costs. In South America, prices of yellow maize and wheat continued to increase in Argentina, underpinned by strong demand and forecasts of lower crops this year. Prices of maize rose sharply also in Brazil, due to large exports and expectations of a decline in the 2018 harvests; those of wheat increased following the sharply reduced production last year and costlier imports.

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