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FPMA Bulletin #5, 9 June 2021

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KEY MESSAGES

↗ International prices of grains increased overall again in May although they began to fall towards the end of the month on improved production prospects. International prices of rice held steady in May, with logistics problems and high shipping costs keeping trading activity subdued throughout the month.

↗ In East Africa, prices of coarse grains remained at near-record to record levels in the Sudan and South Sudan, underpinned by insufficient supplies and severe macro-economic difficulties, including currency weakness sustaining food inflation.

↗ Prices of maize grain in South Africa climbed moderately in May and remained up on a yearly basis, as the effects of higher prices on the international market have outweighed downward pressure from a substantial maize crop estimated for 2021.

↗ In South America, prices of yellow maize increased further in the key producing countries, Argentina and Brazil, remaining well above their year-earlier levels reflecting upward pressure from record export sales and adverse dry crop conditions, respectively. Markets in both countries were also supported by the strong upward trends in international price quotations.