What's New

The latest FAO Food Price Index was released today and is down three points from October's Index. This is the lowest point since June 2012. With the exception of dairy, all commodities covered by the Index fell in November.

The Cereals Price Index is down four points from October, but is still 27 points higher than it was in November 2011. Weakening global rice and wheat prices drove the fall and compensated for higher maize prices.

The Agricultural Market Information System (AMIS) has released the latest edition of its monthly Market Monitor. This month's report sees stabilized world markets as forecasts for 2012-2013 crop outlooks become more finalized. Despite this stabilization, however, attention should be paid to ongoing weather concerns, particularly drought affecting US winter wheat.

Wheat production in 2012 fell below the record seen in 2011, and ending stocks are expected to decline significantly. Wheat use, on the other hand, is expected to drop based on lower feed use in China and the EU.

The latest edition of the FEWS NET Monthly Price Watch is citing sustained high international cereals prices in October, particularly for maize and wheat. While unfavorable weather conditions in key exporting countries have contributed to keeping wheat and maize prices high, recent reductions in demand estimates, particularly from the feed industry, have kept prices relatively stable at high levels.

The November issue of the FAO Monthly News Report was released today. The report covers ongoing global and regional trends in grain prices and policies. This month's report includes articles on global corn inventories and prices, EPA ethanol mandates, and the wheat genome project.

The FAO Monthly News Report on Grains series provides a collection of news articles from international media and news sources on issues relating to the international grain economy. These reports also include statistics and upcoming events.

For many smallholder farmers, accessing larger, more lucrative markets can seem like an impossible proposition. While contract farming (a set agreement between a farmer and a buyer) can help establish set prices and more reliable links to domestic and international markets, contracts are typically signed with more educated, medium-sized farmers rather than smallholders.