FEWS NET Reports Slightly Declining Grain Prices in September

The latest FEWS NET Monthly Price Watch was released on Friday. The report states that international grain prices stabilized at higher levels in August and began to decline in September as more information about the extent of U.S. crop damage due the drought became available.

Earlier South American soybean crop losses, along with downward revisions in U.S. soybean production forecasts, have limited soybean supplies in major exporting countries. These supply-side issues have combined with continued strong international demand to keep soybean and soybean oil prices high in September. Anticipated wheat production shortfalls in the EU, Russia, and Kazakhstan contributed to continued price increases in August, as did spillover effects from the US maize market. Wheat prices stabilized in late August, but remain at high levels.

In general, while they have stabilized in the last month, food prices remain high and vulnerable to market conditions in major exporting countries.