Maize

As poor weather continues to hammer crops in the US, all eyes are on the impact the drought will have on global food prices. It is important for policymakers to look at all the information surrounding food prices, including price volatility. IFPRI's Excessive Food Price Variability Early Warning System provides reliable daily monitoring of food prices and price volatility, based on sophisticated statistical modeling (NEXQ: Nonparametric Extreme Quantile Model).

The USDA has released the latest World Agricultural Supply and Demand Estimate. This report provides comprehensive forecasts of supply and demand for major U.S. and global crops and livestock.

FEWS NET has released its latest Monthly Price Watch , citing continuing rising prices for many staple commodities. US maize prices rose by 20% in July due to the ongoing drought in the Midwest; drop losses in both the US and South America have contributed to increased prices for soybeans and soybean oil as well. International wheat prices also increased in June and July due to expected shortfalls in the European Union, Russia, and Kazakhstan.

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.

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.