FEWS Food Price Watch Sees Declining Rice Prices, Tight Wheat and Maize Stocks

In its latest Monthly Food Price Watch, FEWS NET reports that global rice production for 2012/2013 is expected to be the highest on record. Global soybean production prospects also improved with a 10 percent increase for 2012/2013; however, strong global demand is expected to keep soybean and soybean oil prices high. While global wheat prices remain high, production is only expected to decline by six percent. However, trade policies in key wheat exporting countries could exert further pressure on prices.

Food price trends were mixed in Eastern Africa. Most markets in the region declined or were stable during ongoing seasonal harvests. However, Rwanda, Somalia, and Tanzania saw increased prices due to declining supplies and increased demand during the lean season. Southern Africa is experiencing increased prices as the lean season approaches due to localized production shortfalls and rising fuel prices. West Africa is seeing stable prices.

In Central America, prices declined or remained steady through September. Haiti experienced increased prices due to a combination of poor harvests, currency depreciation, and crop damage from tropical storms.