Maize

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.

The latest USDA World Agricultural Supply and Demand Estimate (WASDE) report was released on Friday. The WASDE report provides monthly comprehensive forecasts of supply and demand for major U.S. and global crops, supplied by the USDA. Crops covered include wheat, coarse grains, rice, and oilseeds. This report can explain past and current global commodities trends, as well as predict trends for the coming year. This month's report cites higher global wheat supplies for 2013/2014, as well as record global corn production.

The USDA released last week its April edition of the World Agricultural Supply and Demand Estimates (WASDE). The WASDE report provides monthly comprehensive forecasts of supply and demand for major U.S. and global crops, supplied by the USDA. Crops covered include wheat, coarse grains, rice, and oilseeds. This report can explain past and current global commodities trends, as well as predict trends for the coming year. This month's report sees higher global wheat stocks for 2012/13, but tight stock-to-use ratios for both corn and soybeans.

The FAO Food Price Index rose slightly in March based on higher dairy prices. The Index rose by 1 percent from February, but is still 1.7 percent lower than March of 2012 and nearly 11 percent below its peak in February 2011.

It's become clearer and clearer in recent years that spikes in food prices can have significant impact on incomes, markets, and nutrition worldwide. Extreme fluctuations in the price of food can pose challenges for both consumers and producers, and also often lead to political and market overreaction such as export restrictions. While such policies are designed to protect domestic populations, they can further exacerbate price spikes on the international market and have devastating consequences for global food security.