Trade

Futures prices for most staple food commodities have fallen since February because of market supply chain disruptions associated with the spread of the COVID-19 virus and lower oil prices, among other factors. However, overall, price variability in the major agricultural commodity markets has remained relatively calm in the face of COVID-19-related shutdowns. Until recently, the exceptions to this relative calm have included hard wheat and coffee. Hard wheat saw moderate and high levels of price variability from April 9 to June 15. This appeared to be related to tightening of wheat markets with lower stock-to-utility ratios, measures taken by two major wheat-producing countries (Kazakhstan and Russia) to limit exports, and reports of prospects of less favorable growing conditions in parts of Ukraine and other parts of Europe. Price variability in coffee was driven by low stock levels and supply disruptions, but these conditions calmed in the second half of May.

With COVID-19 now spreading in India, massive consequences to health and livelihoods are feared, and the government has imposed a 21-day national lockdown to limit virus transmission. Given the precarious livelihoods of many Indians, agriculture, food security, and safety net policy and program responses are also urgently required. Prof. Mahendra Dev, an experienced academic and policy maker in India, provides additional insights into what actions and reforms are needed, and soon.—John McDermott, series co-editor and Director, CGIAR Research Program on Agriculture for Nutrition and Health (A4NH).

The FAO Food Price Index fell for the third consecutive month in April as global markets continue to see the effects of COVID-19. The 3.4-percent decrease brought the Index to the lowest point seen since January 2019.

The FAO Food Price Index fell for the third consecutive month in April as global markets continue to see the effects of COVID-19. The 3.4-percent decrease brought the Index to the lowest point seen since January 2019.

Inclusive, sustainable food systems are crucial for long-term economic and food security, particularly in light of the new challenges presented by COVID-19.