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The dramatic surge in food prices in 2007–2008 seriously threatened the world’s poor, who struggle to buy food even under normal circumstances, and led to protests and riots in the developing world. The FAO’s recent statement that global food prices reached a record high in December 2010 has sparked the memory of this crisis and turned global attention back to the issue of food security.

The USDA Economic Research Service has released its January 2011 reports for wheat, rice, and soybean outlooks. These reports can help inform policy makers of important current issues involving food security, farming, natural resources, and global markets.

Download the January reports below. For more information regarding the USDA ERS reports, visit http://www.ers.usda.gov/

Files:

Oil_Crops.pdf
Rice.pdf

During the 2007-2008 global food crisis, the international price of major agricultural commodities such as wheat, rice, maize, and soybeans more than doubled. As floods in Australia decimate the country’s wheat crop and adverse weather in the US cuts corn and soybean harvests, commodities prices across the globe are again seeing drastic increases. Such price spikes spark the memory of the 2007-08 crisis, raising fears that we may be witnessing a return of widespread food insecurity and subsequent political and economic turmoil.

2011 has seen continuing fluctuations in the international price of agricultural commodities such as wheat, maize, soybeans, and corn. These staples often make up the bulk of the diet of the world’s poor; thus, any drastic change in the price of these commodities can have serious impacts on the economic stability and food security of the developing world. The fear and uncertainty surrounding changing commodities prices panic policy responses that only exacerbate food insecurity.

Commodity production and trade provide the primary livelihoods for millions of households throughout the developing world. The development of this sector is essential to poverty alleviation efforts and overall economic development. However, as witnessed in recent spikes in the price of wheat and soybeans, the commodity sector is challenged by severe price volatility and high marketing costs. Many believe that commodity exchanges provide a way to mitigate these risks and increase economic efficiency in a liberalized market environment.