FPMA Bulletin #1. 10 February 2016
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Abundant supplies and strong export competition kept international grain prices low, with quotations of wheat and maize in January averaging well below their year-earlier levels. International rice prices followed mixed trends depending on the origin. In Southern Africa, maize prices increased sharply in Malawi and South Africa, and also strengthened in Zambia, reaching record highs in all three countries in January. This mostly reflects expectations of a steep reduction of the 2016 maize harves ts due to drought conditions on top of the already tight domestic market supplies. Weaker currencies in the subregion exacerbated the price increases. In South America, cereal prices remained under upward pressure in January and at high levels in several countries, mainly due to the depreciation of the national currencies. In Argentina and Brazil, domestic prices of yellow maize were at record highs, well above their values in January last year.