Commodity

Food prices spiked in March, according to the latest FAO Food Price Index, released this week. The Index rose 4.8 points from February and is at its highest level since May 2013. The increase is due largely to poor weather and continuing unrest in the Black Sea region. Cereal and sugar prices gained the most this month.

Concerns have been growing over how the ongoing political turmoil in the Ukraine, the world's third largest maize exporter, could impact global grain prices and reserves in the coming year. While Ukraine has delivered the majority of its current export obligations, continuing conflict could pose problems for next season's planting and harvest, and thus future export shipments. According to an article published by IRIN News, however, experts do not foresee a long-term impact on global grain prices.

The latest FEWS Net Monthly Price Watch was released this week, citing stable international maize, rice, and wheat prices in December. Maize prices were over 30 percent lower than their December 2012 levels; global maize stocks are expected to hit their highest levels in over a decade due to near-harvest records in the United States, high stocks in South America, and decreasing overall use estimates. World soybean and palm oil production are also expected to reach record levels in 2013-2014. Soybean prices in December were below their 2012 levels.

The latest FAO Food Price Index, released this week, remained largely unchanged from last month's at 206.7 points. Overall, the Index was slightly lower in 2013 than in 2012; food prices declined 1.6 percent in the past year. However, 2013 levels were still the third highest annual value on record.

The Cereal Price Index declined 1.4 percent from November due to record harvests and large global supplies, particularly for wheat and maize. On the other hand, rice prices rose slightly in December. In 2013, the Cereal Index fell by 17 points from 2012.

The latest FAO Food Price Index was released yesterday, remaining virtually unchanged from October at 206.3 points. The Index is 4.4 percent below its November 2012 level.

The Cereals Index dropped two points in November, and is a full 24 percent lower than it was in November 2012. This year's record cereals crop is the main driver of this reduction in cereals prices, particularly for wheat, maize, and rice.