International grain prices spiked sharply in July and have since stabilized at higher levels, according to the latest FEWS Food Price Watch. The August report reflects deteriorating weather conditions in several key exporting countries. The US drought has had a severe impact on both maize and soybean prices, while earlier South American crop losses have put further upward pressure on soybean prices. In addition, wheat shortfalls in Russia, the EU, and Kazakhstan, combined with increased global demand for wheat due to higher maize prices, have led to much higher (although stable) wheat prices. Rice prices have remained relatively stable, although a weak monsoon season in India led to a slight downward revision for the 2012/2013 crop.
East Africa has experienced stabilization, and even slight declines, in staple food prices in Rwanda, Uganda, Kenya, and Tanzania. Sudan, South Sudan, Ethiopia, and Somalia, however, continue to face increased staple food prices as a result of civil unrest and low rainfall. West Africa saw seasonal increases in staple food prices throughout the lean season in July.
Central America and Haiti saw generally low and stable food prices throughout July.