Thumbnail Image

International grain reserves and other instruments to address volatility in grain markets

Working paper presented at the World Grain Forum 2009 St. Petersburg/Russian Federation, 6-7 June 2009










Also available in:

Related items

Showing items related by metadata.

  • Thumbnail Image
    Book (stand-alone)
    International Grain Reserves and other instruments to address volatility in grain markets 2009
    Also available in:
    No results found.

    In the long view, recent grain price volatility is not anomalous. Wheat, rice, and maize are highly substitutable in the global market for calories, and when aggregate stocks decline to minimal feasible levels, prices become highly sensitive to small shocks, consistent with storage models. In this decade stocks declined due to high income growth and biofuels mandates. Recently, shocks including the Australian drought and biofuels demand boosts due to the oil price spike were exacerbated by a seq uence of trade restrictions by key exporters beginning in the thin global rice market in the fall of 2007 that turned market anxiety into panic. To protect vulnerable consumers, countries intervened in storage markets and, if exporters, to limit trade access. Recognizing these realities, vulnerable countries are building strategic reserves. The associated expense and negative incentive effects can be controlled if reserves have quantitative targets related to consumption needs of the most vulner able, with distribution to the latter only in severe emergencies. More ambitious plans to manipulate world prices via buffer stocks or naked short speculation have been proposed, to keep prices consistent with fundamentals. Past interventions of either kind have been expensive, ineffective, and generally short-lived. Further, there is no significant evidence that prices do not reflect fundamentals, including export market access.T his working paper disseminates the findings of work in progress t o encourage the exchange of ideas about development relevant issues. It was prepared as an input for the World Grain Forum 2009 and into subsequent discussions.
  • Thumbnail Image
    Document
    Price Volatility in Food and Agricultural Markets: A policy response 2011
    Also available in:
    No results found.

    Under the Food Security pillar of the Seoul Multi-year Action Plan on Development, the G20 “request that FAO, IFAD, IMF, OECD, UNCTAD, WFP, the World Bank and the WTO work with key stakeholders to develop options for G20 consideration on how to better mitigate and manage the risks associated with the price volatility of food and other agriculture commodities, without distorting market behaviour, ultimately to protect the most vulnerable”. This report has been prepared by FAO, IFAD, IMF, OECD, UN CTAD,WFP, the World Bank, the WTO, IFPRI and the UN HLTF. The approach taken in this report reflects the view of the collaborating international organisations that price volatility and its effects on food security is a complex issue with many dimensions, agricultural and non-agricultural, short and long-term, with highly differentiated impacts on consumers and producers in developed and developing countries. The report begins with a discussion of volatility and of the ways in which volatility af fects countries, businesses, consumers and farmers.
  • Thumbnail Image
    Book (stand-alone)
    The State of Agricultural Commodity Markets (SOCO) 2009
    High food prices and the food crisis – experiences and lessons learned
    2009
    In the first half of 2008, the world was facing the highest food price levels in 30 years and a global food insecurity crisis. Although international food prices have since fallen, they are still above the levels seen in recent years and are expected to remain so. FAO estimates that soaring food prices pushed another 115 million people into chronic hunger in 2007 and 2008, bringing the world total to nearly one billion hungry people. This report explains why food prices increased and the steps needed to ensure that high food prices become an opportunity for developing country farmers to help safeguard world food supplies at affordable prices. It focuses on the extent to which “new” explanations – biofuel demand, record oil prices and increasing food demand in China and India – can account for the sudden food price inflation as well as the role of traditional market drivers. It also explores why so few producers in developing countries responded by investing more and increasing production. Soaring food prices and the consequent food crisis are matters of international concern that require concerted action – there is an urgent need to strengthen the governance of world food security. The State of Agricultural Commodity Markets 2009 aims to bring to a wider public an accessible discussion of agricultural commodity market issues and policy matters. It seeks to provide an objective and straightforward treatment of economic issues for all those interested in agricultural commodity market developments and their impact on developing countries.

Users also downloaded

Showing related downloaded files

No results found.