FAO’s market monitor hints of possible increase in food prices
The Food and Agriculture Organization hinted of possible price increases on several food crops.
In the March issue of its AMIS (Agricultural Market Information System) Market Monitor, the FAO said: “International prices of most AMIS crops exceed last year’s levels with many food markets exhibiting a higher level of volatility, being largely driven by currency fluctuations, trade policy concerns and planting uncertainties.”
The AMIS Market Monitor looks at four main crops: wheat, maize, rice, and soybeans.
The report said export prices of wheat moved up in early February but ample supply and favorable prospects for 2017 harvests trimmed it back later in the month.
Maize prices have been gaining for two consecutive months but retreated slightly in February, still higher compared to a year ago levels.
Rice prices were mixed in February but quotations in India and Vietnam increased because of tight spot availabilities and increased sales to traditional buyers in Africa and Asia.
However, global wheat output estimate for 2016 remains unchanged from the February estimate that put it at an all-time high but early prospects point to a decrease in production for 2017 and higher utilization.
The estimate on maize production for 2016 was raised because of upward revisions on crop estimates in Mexico and the Ukraine and puts it at a record-high but consumption is also expected to expand faster than anticipated because of increase in domestic use in China, India, and Mexico.
Rice production estimates for 2016 was upgraded because of improved prospects in Bangladesh, Tanzania, and India but utilization is also expected to expand.
Soybean production is seen at an all-time high this year because of upward revisions in Brazil and Argentina because of favorable weather conditions but utilization is also expected to increase.