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2011 has seen continuing fluctuations in the international price of agricultural commodities such as wheat, maize, soybeans, and corn. These staples often make up the bulk of the diet of the world’s poor; thus, any drastic change in the price of these commodities can have serious impacts on the economic stability and food security of the developing world. The fear and uncertainty surrounding changing commodities prices panic policy responses that only exacerbate food insecurity.

Commodity production and trade provide the primary livelihoods for millions of households throughout the developing world. The development of this sector is essential to poverty alleviation efforts and overall economic development. However, as witnessed in recent spikes in the price of wheat and soybeans, the commodity sector is challenged by severe price volatility and high marketing costs. Many believe that commodity exchanges provide a way to mitigate these risks and increase economic efficiency in a liberalized market environment.

The World Agricultural Supply and Demand Estimates (WASDE) report provides monthly comprehensive forecasts of supply and demand for major U.S. and global crops, supplied by the USDA. Crops covered include wheat, coarse grains, rice, and oilseeds. This report can explain past and current global commodities trends, as well as predict trends for the coming year.

Download the January report below. For more information regarding the WASDE reports, visit http://www.usda.gov/oce/commodity/wasde/

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The dramatic surge in food prices in 2007–2008 seriously threatened the world’s poor, who struggle to buy food even under normal circumstances, and led to protests and riots in the developing world. The crisis eventually receded, providing some measure of relief for citizens in the countries that were most affected by the price surge; yet the FAO’s recent statement that global food prices reached a record high in December 2010 has raised the specter of another crisis.

The FAO has released its Food Price Index for December, 2010. This report provides a measure of the monthly change in international prices for major food commodities. The December Price Index shows a marked increase in global food prices, with higher sugar, grain, and oilseed costs driving world food prices to a record high.

To view the whole report, visit http://www.fao.org/worldfoodsituation/FoodPricesIndex/en/ .