What's New

As of today (Dec. 10), the dispute settlement mechanism of the World Trade Organization (WTO) has been crippled, as its Appellate Body (AB) has been left with less than three members on the seven-member body. The U.S. government has blocked the WTO from appointing new members, leaving the AB without the minimally required number of judges to hear appeals in trade disputes.

As the world strives to feed a growing population in the face of declining natural resources and ongoing food security crises, commitment from policymakers to a sustainable food future is more important than ever. Argentina’s G20 Presidency has set sustainability and food security as a top priority for this year’s upcoming Ministerial Meeting, and these priorities were also focus of the recent T20 (Think 20) Summit, held in Buenos Aires in September 2018.

The FAO Food Price Index declined somewhat in September, falling 1.4 percent from August to an average of 165.4 points. This represents a 7.4 percent decline from September 2017 levels.

The Cereal Price Index fell by 2.8 percent from August. Maize prices saw the most significant month-to-month reduction, falling by around 4 percent due to ample global supplies and prospects for a large U.S. crop. Wheat prices also declined in September due to strong exports from Russia. Rice prices experienced the smallest decline (1 percent) due in part to an appreciation of the Thai Baht.

The FAO Food Price Index remained virtually unchanged in August, although cereal prices rose as a result of declining crop prospects. At 167.6 points, the Index is around 9 percent lower than its August 2017 levels.

Both hard wheat and soft wheat prices are experiencing a period of excessive volatility, according to the Food Security Portal’s Excessive Food Price Variability Early Warning System. Hard wheat futures prices on the Chicago Board of Trade began experiencing excessive volatility earlier in August, while soft wheat prices began to see excessive movement toward the end of the month. According to the Wall Street Journal, Chicago wheat futures reached a three-year high in early August. This surge was quickly followed by a decline in prices.