Maize

The latest FEWS Net Monthly Price Watch was released last week, citing generally stable international staple grain prices.

Large carry-over stocks of Thai rice have balanced out against record low rice production in the US; global rice production estimates remain on track to surpass record 2011-2012 harvests. Global maize prices also remained stable in June after sharp declines in April, while wheat export prices held steady due to favorable production prospects. Global soybean output is estimated to increase on strong production expected in both North and South America.

The latest FEWS Net Monthly Price Watch was released today. The report saw stable global rice and wheat prices in May, although wheat prices remain at high levels. Rice production is on track to surpass last year's record harvests, and rice prices are expected to remain relatively stable for the rest of the year. Global maize prices increased on delayed planting in North America, caused mainly by poor weather conditions. Closing global maize stocks are expected to be tight despite record South American harvests.

The GIEWS Global Food Price Monitor for May was released today, citing a 5 percent rise in global maize prices. The increase in maize prices reflects planting delays in the US caused by cold, wet weather in key growing areas. Wheat export sales also increased in May, adding further upward pressure on prices. Higher maize prices were seen in many low-income countries in LAC due to higher transport costs and reduced outputs.

The FAO released today its latest Food Price Index , which has remained largely unchanged from last month at 215.2 points. While this is 10 points higher than in May 2012, it still remains nearly 10 percent lower than the peak seen in February 2011.

The Cereals Price Index rose four points from April, largely based on a strong rebound in maize prices as the US experienced planting delays and a tightening of exports. Wheat and rice prices, on the other hand, remained largely unchanged in May.

Just as the sun rises and sets, food price volatility—the variation in food prices over time—is a given these days. Once unexpected price instabilities have now become routine in the era following the food crisis of 2007-2008. For poor households, which spend more than 60 percent of their income on food, price shocks are, indeed, shocks to a struggling family’s bottom line. For example, farmers find it difficult to know what type of crop and how much of it to plant, leading to shortages and lost incomes.