What's New

According to a new update released by GIEWS, the export prices of some major grains have jumped in the past month. Compared to June levels, the export price of maize increased by 20 percent in the first three weeks of July; the benchmark US yellow maize reached a record high of USD 322 per tonne.

The international price of wheat has also risen sharply in July, increasing by 21 percent in the first three weeks. Despite this drastic increase, wheat prices still remain far below the record high seen in March 2008.

Food security has been a constant topic in the media in recent weeks as commodity prices continue to climb following the drought in the Midwestern US. While the causes of this most recent commodity price spike seem clear - negative weather in the US and South America impacting crop yields, as well as decreased export sales from some of the world's largest exporters - a new tool provides insight into another potential factor in food price spikes and price volatility: the media itself.

Global maize markets are currently experiencing a period of excessive price volatility. This is the first such period since June 2011 and can be largely attributed to conditions in the Midwest United States, which is experiencing the worst drought in 56 years. The United States is the world's largest maize exporter.

Global soybean prices hit an all-time high on Monday in the wake of continuing hot, dry weather across the US Midwest. In addition to pushing prices higher, the drought and subsequent declining soybean stocks and lower expected exports are also causing a period of excessive price volatility in the commodity. It is the first time such a period has been seen for soybeans since December 2010.

The latest USDA World Agricultural Supply and Demand Estimates has been released, citing sharply lowered US production and supply estimates for both corn and soybeans. The reduction in US supplies is expected to impact global supplies and trade as well.

Global soybean production is projected at 267.2 million tons, a decrease of 3.9 million tons that can be attributed largely to lower production in the United States. US soybean exports for 2012/13 have been reduced 115 million bushels to 1.37 billion.