What's New

The FAO Food Price Index for May was released yesterday and is down 2.5 points from April, and nearly 7 points from May 2013. This is the second decline in a row, following the ten-month high reached in March. The decline is driven mostly by lower dairy, cereals, and vegetable oils prices.

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.

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 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.

The latest FEWS Net Monthly Price Watch was released yesterday. The report sees declines in the majority of international prices, with the exception of soybeans.