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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 prices decreased in August 2024, mostly reflecting weak international demand and larger production estimates in some major exporters. Regarding maize, concerns about crop conditions and prospects of tighter export supply contributed to slightly firmer international prices. International rice prices increased, although mixed price trends across origins and varieties kept the August increase modest. In several FAO­-monitored countries, domestic staple food prices remained at high levels in July and August 2024. In South Sudan and the Sudan, food access continued to be highly constrained as prices of coarse grains reached new record highs in an environment of protracted conflict, tight domestic supply and persistent macroeconomic difficulties. In Southern Africa, food prices remained under upward pressure, amid supply shortages following the drought-reduced 2024 cereal harvests and weak currencies.

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