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Ten reliable rice years

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The AMIS prices panel as we find it in 2014 January. Weekly international rice prices (top) are for Thai rice, which have been on a plateau from 2012 Jan to around 2013 April, after which they declined. Rice futures prices (60-day average) have also been on a very gentle upward slope (middle) since 2012 Jan after pronounced swings to that point from 2010 Jan. Rice price volatility was dampened during the last quarter of 2011 until third quarter 2013 (compared to the previous two years) and has moved slowly lower over three years (bottom). Charts: FAO-AMIS

The AMIS prices panel as we find it in 2014 January. Weekly international rice prices (top) are for Thai rice, which have been on a plateau from 2012 Jan to around 2013 April, after which they declined. Rice futures prices (60-day average) have also been on a very gentle upward slope (middle) since 2012 Jan after pronounced swings to that point from 2010 Jan. Rice price volatility was dampened during the last quarter of 2011 until third quarter 2013 (compared to the previous two years) and has moved slowly lower over three years (bottom). Charts: FAO-AMIS

International grains traders rarely consider the historicity of what they deal with day in and day out. Wheat up today, maize down tomorrow, soy futures worth considering for next month, milk powder positions to be liquidated, and so on. Hold what you can profit from only so long as there is profit to be made, and futures are nothing but bets you’ve studied carefully.

But even for the hard-boiled traders, the last decade of rice has made them turn to look back and consider the curiosities of the market. Inventories of rice, all over the world, have been growing slowly and steadily for close to a decade. Now that trend, which since 2003 has been one of the longest unbroken trends in world agriculture, is ending. The change is being attributed, in the commodity exchanges and grain trading floors, to what is called a ‘downgrade’ of supplies of rice in India by the International Grains Council.

The first such forecast decline in world rice stocks, of about one million tons, means that the IGC is estimating world rice inventories at the close of 2013-14 to be 108 million tons. The curious aspect is that India is expecting a bumper rice harvest for 2013-14, and although IGC says world inventories will drop slightly (the end of the trend), there is also a reduced estimate for world consumption of rice, which is another curiosity.

According to the traders Thailand, the top rice exporter for years, has been stockpiling rice “at prices some 40%-50% above the market” and thereby prompting credit rating agencies like Moody’s to claim that the cost of the Thai programme was “threatening the country’s sovereign debt rating”.

This is plain rubbish. Traders and commodity exchanges do not grow rice to feed their families and sell if there is a small surplus to sell. The finance bots in predatory agencies like Standard and Poor’s, Moody’s and Fitch – considered the three largest by the scale of their work – don’t know the difference between a cauliflower and millet and can grow neither. Thai, Indian and African small farmers could not care less whether credit rating agencies exist and our governments should learn what true sovereignty means from our small farmers.

The FAO and IGC food price indexes and their sub-indices. For FAO the chart shows the FAO Food price Index and the cereals, oils and fats and dairy sub-indices over the last five years. For IGC the lower chart shows the IGC Grains and Oilseeds Index, also over the last five years, with the wheat, maize and rice sub-indices. The IGC rice sub-index has also recorded a plateau from 2012 January onwards with a more pronounced decline setting in from 2013 August. Charts: FAO-AMIS

The FAO and IGC food price indexes and their sub-indices. For FAO the chart shows the FAO Food price Index and the cereals, oils and fats and dairy sub-indices over the last five years. For IGC the lower chart shows the IGC Grains and Oilseeds Index, also over the last five years, with the wheat, maize and rice sub-indices. The IGC rice sub-index has also recorded a plateau from 2012 January onwards with a more pronounced decline setting in from 2013 August. Charts: FAO-AMIS

The odd tale of rice was given a late twist by two cyclones. One is Cyclone Phailin which struck the eastern Indian coast in the first week of October 2013. And he other is Typhoon Haiyan, which struck the Philippines in early November 2013. Vietnam is to supply 500,000 tons of rice to the Philippines, which has sought the supplies to boost state reserves depleted by the relief operations after Typhoon Haiyan.

The FAO’s Rice Market Monitor for 2013 November said: “Although accounting for much of the worsening in the global outlook, Asia is still expected to sustain growth in world rice production in 2013. According to the latest forecasts, the region is to harvest 672.7 million tonnes (448.6 million tonnes, milled), 1.2% more than in 2012. Foremost among countries responsible for the increase are India, Indonesia, Thailand, Myanmar and Bangladesh. By contrast, drought in China’s central and eastern provinces exacted a heavy toll on the intermediate and late rice crops, which may bring about the first production decline in the country since 2003.”

I find the FAO Rice Market Monitor more detailed than what the IGC puts out (although IGC’s public offerings are but a distillation of what subscribers to the information service obtain). The FAO Monitor has also added that given a poor delivery record so far, Thailand appears unlikely to boost its exports beyond the relatively low level of last year. And that expectations have improved for India, which may replicate the 2012 record performance, with Australia, Cambodia, China (Mainland), Egypt, Pakistan, Paraguay and the USA also forecast to export more.

World agri estimates 2012 February – 692 mt of wheat, 462 mt of rice

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The World Agricultural Supply and Demand Estimates (WASDE) for 2012 February have been released by the United States Department of Agriculture (USDA, through its Economic Research Service of the Foreign Agricultural Service).

Here are the important numbers: total wheat production 692.88 mt, total wheat exports 140.25 mt (of which 26.54 mt is US, the former Soviet Union countries (12) is 35.21 mt); total coarse grains production 1,142.19 mt (coarse grains include corn, sorghum, barley, oats, rye, millet, and mixed grains), total coarse grains exports is 119.81 mt; total world corn production is 864.11 mt; total world rice production is 462.75 mt.

Families queue for food at a feeding point in BadBado IDP camp in Mogadishu, Somalia. Photo: IRIN / Kate Holt

Here is what WASDE has said about global wheat, coarse grains and rice:

Wheat – Global wheat supplies for 2011-12 are projected 2.1 million tons higher with larger beginning stocks in Kazakhstan and increased production for India, Kazakhstan, and Morocco. Kazakhstan beginning stocks are raised 0.6 million tons with reduced domestic consumption for 2010-11. India production for 2011-12 is increased 0.9 million tons reflecting the latest government revisions, which increased yields for the crop that was harvested last spring. Kazakhstan production is raised 0.2 million tons based on the recent official estimate. Production for Morocco is raised 0.2 million tons also on official revisions to estimated yields in a crop that was harvested several months ago.

Global trade is raised slightly for 2011-12 with world imports increased 0.7 million tons. Small increases in imports are made for Saudi Arabia, Mexico, Chile, and Ethiopia. Export reductions for Ukraine, Canada, and India are more than offset by increases for Russia, the United States, Argentina, and Brazil. Global wheat consumption is reduced 1.0 million tons mostly reflecting a 1.6-million-ton reduction in India food use. Partly offsetting are small increases in food use for Australia, Chile, Ethiopia, and Kazakhstan. Global wheat feeding is nearly unchanged with a 1.0-million-ton reduction for Kazakhstan offset by increases for Ukraine, Saudi Arabia, Canada, and Mexico. Global ending stocks for 2011-12 are raised 3.1 million tons to a record 213.1 million. As projected, 2011-12 global wheat stocks would be 2.4 million tons higher than the previous record in 1999-2000.

A woman peels cassava in a village close to the northern Zambian town of Mpulungu. Photo: IRIN / Guy Oliver

Coarse grain – Global coarse grain supplies for 2011-12 are projected 3.1 million tons lower mostly reflecting reduced corn production prospects in Argentina and, to a lesser extent, Paraguay. Argentina corn production is lowered 4.0 million tons to 22 million as field reports confirm that high temperatures and extensive dryness during pollination in late December and early January resulted in irreversible damage to early corn in the central growing region. Late planted corn, which has been on the increase in recent years, will help offset some of the earlier losses, but additional rainfall is needed to stabilize production prospects. Corn production is lowered 0.4 million tons for adjacent Paraguay where hot, dry weather also reduced area and yields. Partly offsetting are small corn production increases for EU-27 and the Philippines. Global barley production is raised with Argentina production up 0.7 million tons on higher reported area and yields for the crop that was harvested during late 2011.

[You can get the data file here, and the pdf report here.]

Global coarse grain trade for 2011-12 is raised with higher corn imports for EU-27 and higher barley imports for Saudi Arabia, EU-27, and Jordan. Partly offsetting is a reduction in corn imports for Canada. Higher corn exports for a number of countries offset a 4.5-million-ton reduction for Argentina. Along with the projected increase for the United States, corn exports are raised 2.0 million tons for Ukraine, 0.5 million tons each for Brazil and EU-27, and 0.2 million tons for Russia. Barley exports are lowered 1.0 million tons for Ukraine, but raised 0.7 million tons for Russia, 0.5 million tons for Argentina, and 0.3 million tons each for Canada, EU-27, and Kazakhstan.

Global coarse grain consumption for 2011-12 is raised slightly with higher barley feeding in Ukraine and Jordan and higher corn feeding in Argentina and Ukraine. Corn feeding, however, is lowered for Canada and barley feeding is lowered for Kazakhstan and Saudi Arabia. Saudi Arabia is expected to rebuild stocks as world barley production has rebounded from a 40-year low in 2010-11. Global coarse grain ending stocks for 2011-12 are lowered, with a 2.8-million-ton reduction in corn stocks and a 0.6-million-ton reduction in barley stocks. At the projected 125.4 million tons, global corn ending stocks would be the lowest since 2006-07.

A woman tends to her goods while at a morning market in Kathmandu. Agriculture accounts for about 75 percent of the nation's workforce. Photo: IRIN / David Longstreath

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Rice – Global 2011-12 projections of rice production, consumption, trade and ending stocks are raised from last month. The increase in the global rice production forecast is due mostly to increases for India and the Philippines, which are partially offset by reductions for Brazil, Egypt, Argentina, and the United States. The U.S. rice crop (milled equivalent basis) is lowered slightly resulting entirely from the decrease in the average milling yield. India’s rice crop is forecast at a record 102 million tons, up 2 million from last month due to an increase in both harvested area and yield. According to the U.S. agricultural counselor in New Delhi, favorable 2011 monsoon rains coupled with overall good weather conditions in the major rice producing areas supported higher kharif rice acreage and productivity.

The Brazil rice crop is lowered 340,000 tons due to the effects of drought in Rio Grande do Sul, an important rice producing State. Global exports are raised by 1.4 million tons, primarily due to an increase for India and Egypt, which are partially offset by reductions for Thailand, Vietnam, and the United States. Forecast India exports are raised 2 million tons to a record 6.5 million tons, while exports for Thailand and Vietnam are lowered 500,000 and 200,000 tons, respectively. Forecast imports are sharply raised for Egypt based on information from the agricultural counselor in Cairo. Global ending stocks are up slightly from last month to 100.1 million tons mainly due to an increase for the Philippines.

Grains till 2016-17: the IGC speaks

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The International Grains Council (IGC) has prepared a summary of projections for grains and cereals. The IGC Secretariat has said of its work that “the figures represent the Secretariat’s view of the general development of the global grains economy in the period to 2016-17, taking into account a number of broad assumptions”.

These include assumed trends in population growth, prices, developments in agriculture and trade policy, as well as prospects for the global economy. “The latter have become increasingly uncertain over the past year”, the IGC Secretariat has said. The IGC has added the proviso that these estimates and the forecast derived from them are subject to risk, and this analysis assumes that current economic problems do not worsen. Here are the sections:

Total Grains
* World grains production in 2016-17 is projected to reach 1.98bn tons, a 158m. increase (+9%) compared with 2011-12; wheat output is forecast to rise by 30m. (4%) and maize by 94m. (11%).
* Despite heightened economic uncertainty, the analysis assumes any slowdown in global economic growth will be temporary and increasing prosperity will boost grains consumption, particularly for feed and industrial uses. Feed use is expected to rise at a slightly faster pace than in recent years, while increases in industrial use will slow from the very rapid rates in the past decade. Diversifying diets, particularly in favour of livestock products, will slow the rise in direct use of grains for human food. Total grains consumption is projected at 1.98bn. tons in 2016-17 (1.83bn. in 2011-12), including 659m. (630m.) for human food, 846m. (769m.) for feed and 343m. (302m.) for industrial uses.

World grains stocks are forecast to show little change in the medium term and are set to remain relatively tight, especially for maize. At the end of 2016-17, world grain carryover stocks are projected at 354m. tons (compared with 360m. at the end of 2011-12), including 118m. (123m.) of maize, 196m. (202m.) of wheat and 26m. (23m.) of barley.
* World grains trade is projected to increase by about 2% per year, to 273m. tons in 2016-17, with wheat and maize rising to new records. Increasing demand for wheat-based foods will lift wheat import needs in Africa and Asia. Imports of maize for feed will rise, especially in Pacific Asia, with China seen as a more regular buyer.

Wheat
* Increases in world wheat production in the five years ending 2016 are expected to be broadly matched by use, and global stocks are expected to be maintained at close to recent levels.
* Planting decisions will be influenced by likely attractive prices for alternative crops, especially maize and oilseeds. Nevertheless, some rise in global wheat area is anticipated, led by gains in the CIS. After a relatively sharp increase of 1.6% in 2012-13, including a recovery in North America, global areas are projected to expand by around 0.4% annually. Taking into account slightly increased average yields over the period, world wheat production is projected to reach a record 714m. tons in 2016-17, representing an increase of 30m. compared with the estimate for 2011.
* World wheat consumption is projected to grow by 1.1% annually, close to the long-term average, reaching 716m. tons in 2016-17, up by 39m. compared with 2011-12. A continued increase in human food use accounts for half the rise, driven by expanding demand in developing countries. At 0.8% per year, the average annual increase is only slightly slower than the longer-term trend of 1.0%. Increases in world feed use mainly reflect a tight S&D outlook for maize and expectations that the cost of wheat will be more attractive than maize at times. Gains in industrial use are expected to accelerate, particularly for biofuels, although overall amounts will remain small relative to total consumption.
* World wheat carryover stocks are projected to stay relatively ample in the next five years, receding only slightly, to 196m. tons. Those in the eight major exporters are projected to show an initial rise, but then fall back to about the same level as currently.
* World wheat trade to 2016-17 is forecast to increase by around 2% per year, reaching a fresh record of 138m. tons. Increases in milling wheat trade will be sustained by rising demand in developing countries in Asia and Africa, while feed wheat may show some further gains if import costs are competitive with maize.

[The IGC forecast document is available here (pdf)]
[The spreadsheet (xls) with the major grains’ data is available here]

Rice
* Only a modest expansion in the global paddy (rice) area is forecast in the five years to 2016-17, with the average year-on-year increase projected at just 0.3% (compared to an average of 0.7% in the prior five-year period). To some extent, this reflects an expected contraction in China’s sowings, amid a continued shift to diets that are richer in protein. Taking into account slightly reduced average yield gains, global rice production (milled basis) is projected to increase by 23m. tons, to 482m. by 2016-17, an annual average growth rate of 1%.
* Global rice consumption is projected to reach 482m. tons by 2016-17, up by 25m. from 2011-12. At 1.1%, average growth, while broadly in line with the global population trend, will be lower than in previous years. This is due to a forecast contraction in China, as well as more moderate growth in other parts of Asia. Elsewhere, sub-Saharan Africa is expected to be one of the fastest growing regional markets, the result of a rising population and a shift away from traditional, locally-grown cereals.
* The world rice carryover is projected to rise only slightly over the next five years, to 103m. tons. In the five major exporters, stocks are expected to initially increase – centred on inventory accumulation in India and Thailand – before edging slightly lower. Their share of the world total will average around one-third through to 2016-17.
* Global rice trade is projected to expand by nearly 3% annually, to 37.2m. tons by 2017, broadly in line with maize but comfortably exceeding the year-to-year rise in wheat. Growth will be underpinned by larger shipments to Far East Asia, especially the Philippines, and sub-Saharan Africa. The latter sub-region will remain heavily dependent on imports to meet domestic requirements; their share of total consumption is forecast to average 45%.

Maize (Corn)
* The supply and demand for maize (corn) is projected to remain tight, with world inventories projected to drop to historically low levels.
* With firm global demand and generally tight availabilities expected to support world prices, maize plantings are projected to remain high across the forecast period. Increases in area and improvements in yields, especially in the US, Latin America and China, result in large consecutive crops. World maize production is forecast to increase to 949m. tons in 2016-17, some 94m. higher than the estimate for 2011.
* Global maize consumption is projected to rise to 949m. tons in 2016-17, up by 86m. from 2011-12. Growth in use is forecast to decelerate, mainly due to slowing industrial demand. With use for ethanol in the US levelling out, industrial consumption is projected to rise by 2% annually, compared to 12% in the last five years. Despite high prices, rising meat demand in developing countries will lift feed maize consumption by around 2% per year. Population growth, rising per capita incomes and changing dietary preferences are expected to boost meat consumption in parts of Asia, Latin America and Africa.
* World closing stocks are expected to tighten but, with supply and demand seen broadly in balance towards the end of the forecast period, the projected 2016-17 carryover of 118m. tons would only be 5m. below that at the end of 2011-12. US ending stocks are forecast to increase from recent lows, but China’s will decline.

Agricultural supply and demand estimates show impact of US heatwave

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The heatwave of mid-2011 is reflected in the latest World Agricultural Demand and Supply Estimates (WASDE), from the US Department of Agriculture, for 2011 September. The numbers and the accompanying commentary show just how badly this year’s scorching temperatures and insufficient rainfall has affected the outlook for corn, soybeans and cotton, as Worldcrops has observed.

Worldcrops has said that the most serious supply-demand tightness of these three agricommodities will be felt in corn, with a stocks-to-use ratio by the end of August 2012 now put at 5.3%. The national average yield in the US is forecast to be 148.1 bushels/acre, 4.9 bushels less than last month’s report and a massive 16.6 bushels below the record set in 2009-2010. Nevertheless this would still be the third biggest crop ever.

The USDA has slashed projected corn use for 2011-2012 by 100 million bushels – but only cut expected corn-for-ethanol usage by a meagre 50 million bushels. By August next year the US ending stocks will be, according to the report, 672 million bushels. That’s a drop in the bucket and by rights – and barring a global macroeconomic disaster – we ought to see $8/bushel corn futures sooner rather than later. Not least because the later the corn matures in the ground, the greater the risk of early frost damage.

We turn to the WASDE 2011 September commentary direct:

Wheat – Global wheat supplies for 2011-12 are projected 7.6 million tons higher mostly on larger beginning stocks in Canada and increased production for Canada, EU-27, and Ukraine. Beginning stocks for Canada are raised 1.3 million tons and production is raised 2.5 million tons, both reflecting the latest estimates from Statistics Canada. EU-27 production is raised 2.3 million tons with increases for Germany, Romania, France, Spain, and Bulgaria as harvest reports and revisions to official estimates continue to indicate higher yields. Production for Ukraine is raised 1.0 million tons based on the latest harvest reports. Other smaller production changes include 0.2-million-ton increases for both Brazil and Morocco, and a 0.2-million-ton reduction for Uzbekistan.

World wheat trade is raised slightly for 2011-12 with increased imports projected for the United States and Uzbekistan. Global exports are also raised as higher expected shipments from Canada and EU-27 more than offset reductions for the United States and Turkey. Global wheat consumption is increased 1.9 million tons with higher expected wheat feeding in Canada, China, Morocco, and Turkey more than offsetting a reduction for Russia. World wheat ending stocks for 2011-12 are projected 5.7 million tons higher at 194.6 million. At this level, global stocks would be up from 2010-11 and the second largest in the past decade.

Conversion Factors
1 metric ton = 45.9296 bushels
1 metric ton = 19.68 cwt
1 cwt is a hundredweight of 112 pounds or 45.35 kilogram

Coarse grain – U.S. feed grain supplies for 2011-12 are projected lower this month with reduced corn production as summer heat and dryness continue to be reflected in survey-based yield forecasts. Corn production for 2011-12 is forecast 417 million bushels lower with expected yields down from last month across most of the Corn Belt. The national average corn yield is forecast at 148.1 bushels per acre, down 4.9 bushels from August and 16.6 bushels below the 2009-10 record. As forecast, this year’s yield would be the lowest since 2005-06. Despite the lower yield, production is forecast to be the third highest ever with the second highest planted area since 1944. Total corn supplies for 2011-12 are lowered 442 million bushels with a 20-million-bushel reduction in carryin and a 5-million-bushel reduction in expected imports. Beginning stocks for 2011-12 drop with small increases in 2010-11 exports and use for sweeteners reflecting the latest available data. lmports for 2011-12 are reduced with the smaller forecast corn crop in Canada. Supplies for 2011-12 are projected to be the lowest since 2006-07.

USDA corn stocks-to-use ratio. Graphic: Worldcrops

Total corn use for 2011-12 is projected 400 million bushels lower with tighter supplies. Projected feed and residual use is reduced 200 million bushels mostly reflecting lower expected residual disappearance with the smaller forecast crop. Corn use for ethanol is projected 100 million bushels lower with higher expected corn prices and continued weakening in the outlook for U.S. gasoline consumption as forecast by the Energy Information Administration. Corn exports for 2011-12 are projected 100 million bushels lower with increased supplies and exports expected from Ukraine, Argentina, and Brazil. U.S. ending stocks are projected 42 million bushels lower at 672 million. The stocks-to-use ratio is projected at 5.3 percent, compared with last month’s projection of 5.4 percent. The season-average farm price is projected 30 cents per bushel higher on both ends of the range to a record $6.50 to $7.50 per bushel.

Global coarse grain supplies for 2011-12 are projected 3.1 million tons lower with larger barley, sorghum, millet, and oats supplies only partly offsetting the reduction for corn driven by the U.S. changes. Global corn supplies are reduced 4.5 million tons as increases in foreign beginning stocks and production partly offset the reduction in U.S. supplies. Projected global corn production for 2011-12 is lowered 5.9 million tons as a 4.8-million-ton increase in expected foreign output is outweighed by the 10.6-million-ton U.S. reduction. Brazil and Argentina production for 2011-12 are raised 4.0 million tons and 1.5 million tons, respectively, on higher expected area with rising returns for corn in both countries. Ukraine corn production is raised 1.5 million tons based on indications for higher yields. Production is raised 1.0 million tons for EU-27 with higher expected yields in France and several countries in Eastern Europe. Production is lowered 1.0 million tons for Canada based on the latest Statistics Canada estimates. Production is also lowered 2.1 million tons for Egypt as lack of government restrictions on planting resulted in a sharp shift in acreage away from corn and into rice.

Global coarse grain trade for 2011-12 is raised slightly with increased foreign trade in barley and corn more than offsetting the reduction in U.S. corn shipments. Barley imports are raised for Saudi Arabia and Syria with larger shipments expected from Ukraine and Russia. Corn exports are raised for Ukraine, Argentina, Brazil, and EU-27. Corn exports are lowered for Canada and Paraguay. Global corn consumption for 2011-12 is lowered 7.3 million tons, mostly reflecting lower expected use in the United States. Foreign corn feeding and consumption are nearly unchanged. World corn ending stocks are projected up 2.9 million tons with increases in South America, Ukraine, and EU-27 more than offsetting the reduction projected for the United States.

Rice – All rice beginning stocks for 2011-12 are lowered 2.7 million cwt from last month to 48.4 million (rough-equivalent basis) based on USDA’s Rice Stocks report released on August 26. The import projection is raised 1.0 million cwt to 19.0 million as it is expected that more long-grain rice will be imported due to tighter domestic supplies.

Exports for 2011-12 are projected at 93.0 million cwt, down 4.0 million cwt from last month, and down 18.6 million from the revised 2010-11 estimate. Long-grain exports are lowered 5.0 million cwt from last month to 61.0 million, and combined medium- and short-grain exports are raised 1.0 million to 32.0 million. The decrease in the export projection is due mostly to a much tighter supply situation, but additionally to an expected increase in competition from South American exporters in Western Hemisphere long-grain markets. Long-grain exports to Iraq are also expected to be lower. Increased competition principally from Egypt is expected to reduce medium-grain exports to Libya. All rice ending stocks for 2011-12 are projected at 38.3 million cwt, up 5.1 million from last month, but down 10.1 million from the revised 2010-11 stocks.

Projected global 2011-12 rice supply and use are increased from last month. Global rice production is projected at a record 458.4 million tons, up 2.1 million tons from last month, primarily due to larger expected crops in Brazil, China, the Philippines, and the United States. China’s 2011-12 rice crop is increased 1.0 million tons to 139.0 million, due mainly to an increase in the early rice crop. Brazil’s rice crop is raised nearly a million tons due to both an increase in area and expected yield. The recent surge in global prices accounts for the increase in planted area in Brazil from last month’s forecast. Global 2011-12 trade is nearly unchanged from last month. Global consumption is raised 0.7 million tons from a month ago due mostly to China. Global ending stocks for 2011-12 are projected at 98.7 million tons, up 0.7 million from last month, and the largest stocks since 2002-03. Stocks are raised for Brazil, China, the Philippines, and the United States.

Worldcrops has said that for soybeans. Ending stocks by end-August 2012 are put at 165 million bushels, 29 million higher than the August report but still tight. The US will have a reduced capacity to export soybeans and the futures price in our opinion will climb inexorably to $15/bushel and go significantly higher, if the weather outlook for the all-important South American soybean crop is unfavourable later this year. All in all this report has nothing which will astonish the markets immediately but lays the foundation for a significant bull-run in corn and, to a lesser extent, soybean futures in the coming months.

World crop estimates in June – lower wheat, corn and coarse grain, rice mixed

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Here it is, just released. The World Agricultural Supply and Demand Estimates (WASDE) of the USDA, 09 June 2011. Highlights and key points for the major crop groups follow:

Global wheat supplies for 2011-12 are projected slightly lower this month as an increase in beginning stocks is more than offset by lower production. Global beginning stocks are projected 4.9 million tons higher mostly reflecting increased stocks in Russia as feeding is reduced 2.0 million tons and 5.0 million tons, respectively, for 2009-10 and 2010-11. Beginning stocks for 2011-12 are also raised 0.5 million tons each for Argentina and Canada with the same size reductions in 2010-11 exports for each country. Partly offsetting is a 1.5-million-ton decrease for 2011-12 beginning stocks for Australia with higher 2010-11 exports.

World wheat production is projected 5.2 million tons lower for 2011-12. At 664.3 million tons, production would be the third highest on record and up 16.1 million from 2010-11. This month’s reduction for 2011-12 mostly reflects a 7.1-million-ton decrease for EU-27 wheat output. Persistent dryness, particularly in France, but also in Germany, the United Kingdom, and western Poland, has reduced yield prospects for EU-27. Production is also reduced 1.0 million tons for Canada as flooding and excessive rainfall, particularly in southeastern Saskatchewan and adjoining areas of Manitoba, are expected to reduce spring wheat seeding. Production is increased 1.5 million tons for Argentina and 0.5 million tons for Australia, both reflecting favorable planting conditions and strong producer price incentives to expand area. Production is also raised 0.5 million tons for Pakistan as increased use of higher quality seed and adequate water supplies resulted in higher-than-expected yields.

Global wheat trade for 2011-12 is projected slightly higher reflecting a 0.5-million-ton increase in expected imports by EU-27. Exports are lowered 3.0 million tons for EU-27. Export increases of 2.0 million tons and 1.0 million tons, respectively, for Australia and Argentina offset the EU-27 reduction. Exports are raised 0.3 million tons for Pakistan with the larger crop. Global wheat consumption is projected down 3.3 million tons, mostly reflecting a 2.5-million-ton reduction in EU-27 domestic use.

Global coarse grain supplies for 2011-12 are projected down 7.8 million tons this month with lower beginning stocks and production. Reduced U.S. corn production, lower EU-27 barley production, and reduced corn beginning stocks in China, more than offset increases in China corn production. EU-27 barley production is lowered 2.2 million tons as prolonged dryness across western and northern Europe has sharply reduced yield prospects in the major producing countries. China corn area is raised for 2010-11 in line with the most recent official government area estimates with the year-to-year percentage increase for 2011-12 largely maintained.

China corn production increases 5.0 million and 6.0 million tons, respectively, for 2010-11 and 2011-12 with yields unchanged month-to-month. More than offsetting the higher production levels is higher estimated corn consumption for both feeding and industrial use. China corn consumption is raised 8.0 million tons and 13.0 million tons, respectively, for 2010-11 and 2011-12. Together these changes leave projected 2011-12 corn ending stocks down 12.0 million tons for China. At the projected 51.0 million tons, China’s stocks would be down 2.7 million tons from 2010-11 and just below the levels of the preceding 2 years, better reflecting the continuing rise in domestic corn prices as production struggles to keep pace with rising usage. Although China’s stocks represent 46 percent of the world total for 2011-12, China is not expected to be a significant exporter.

Global 2011-12 corn trade is raised slightly this month with higher imports for EU-27 and higher exports for Ukraine. Ukraine exports are raised 1.0 million tons with higher production and stronger expected demand from EU-27. Russia exports are lowered 0.5 million tons with lower production. Other important trade changes this month include a 0.2-million-ton increase in sorghum imports by Mexico, driving the U.S. export increase, and a 1.5-million-ton reduction in EU-27 barley exports with lower production and tighter supplies. Barley imports are lowered for Saudi Arabia and China. Global corn ending stocks for 2011-12 are projected down sharply this month, falling 17.3 million tons mostly reflecting the usage revisions in China. The projected 5.2-million-ton drop in U.S. ending stocks accounts for most of the rest of the decline. Global corn stocks are projected at 111.9 million tons, the lowest since 2006-07.

Global 2011-12 rice supply and use are lowered from a month ago. Global production is projected at a record 456.4 million tons, down 1.5 million from last month’s forecast, primarily due to a decrease for China. Additionally, production projections are raised for Egypt and Guyana, but lowered for the United States and Cuba. China’s 2011-12 rice crop is projected at 138.0 million tons, down 2.0 million from a month ago; primarily due to the impact of prolonged drier-than-normal weather in the Yangtze River Valley affecting mostly early rice. Egypt’s crop is increased 0.9 million tons to 4.0 million due to a 33 percent increase in area—based on a recent report from the Agricultural Counselor in Cairo. The global import and export forecasts for 2011-12 are little changed from last month. Global consumption for 2011-12 is lowered 0.8 million tons, primarily due to lower consumption expected in China, but partially offset by increases for Egypt, EU-27, and Vietnam. Global ending stocks for 2011-12 are projected at 94.9 million tons, down 1.3 million from last month, due primarily to reductions for China and the United States which are partially offset by increases for Egypt, the Philippines, and Vietnam.

Global oilseed production for 2011-12 is projected at 456.9 million tons, down 2.3 million from last month, mainly due to lower rapeseed production. EU-27 rapeseed production is reduced 1.2 million tons to 18.8 million mainly due to lower yields resulting from dry conditions in April and May in major producing areas of France and Germany. Rapeseed production for Canada is lowered 0.5 million tons to 13.0 million due to reduced area planted resulting from excessive moisture this spring. China soybean production is reduced 0.5 million tons to 14.3 million reflecting lower area as producers shifted to corn. Other changes include increased sunflowerseed production for Russia, and reduced cottonseed production for Australia, Pakistan, and the United States. Brazil’s 2010-11 soybean production is increased 1.5 million tons to a record 74.5 million, reflecting yield and production increases reported in the most recent government survey. [Get the full WASDE report here.]

Grains market report, 2011 April – IGC highlights volatile trading

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The International Grains Council has released its grain market report for 2011 April. Here are the salient points and outlooks for wheat, rice and maize.

IGC grains and oilseeds prices index

The past month was again volatile in global markets, with a sharp jump in grain values in early April largely centred on renewed bullish trading in maize (corn), partly in response to new US data indicating heavier than anticipated domestic use. However, there was also general nervousness about world weather conditions for upcoming northern hemisphere harvests, while developments in other commodities, energy markets and global economic news played a role too.

Day-to-day volatility in futures exchanges remained very high, with the average “historical volatility” percentage (HV20) for nearby US CME corn in Chicago showing a further increase since March. International wheat prices registered net gains of some $30 per ton, reflecting a generally tight market for milling wheat, especially premium varieties, with concerns about the impact of dry conditions on the next US Hard Red Winter crop and overly wet weather on spring wheat plantings.

There were also uncertainties about the future relaxation of export controls in the Black Sea region. US nearby maize futures climbed to all-time highs in early April, when the latest quarterly stocks data, indicating much higher than anticipated use, eclipsed the slightly bearish US planting forecast, reigniting worries about the likely low level of pipeline stocks. Heavy US export sales activity and continued speculation about purchases by China added further to the bullish market sentiment. [Get the IGC index data file here.]

In contrast, prices of oilseeds showed little net change in the past month, with new-crop soyabeans from South America beginning to enter the market, offsetting concerns about the tighter supply outlook in the US. Global rice prices actually moved lower in the face of improved supplies from recent Asian exporter crops. Despite strong global demand for commodities and raw materials, and rising bunker fuel prices, dry bulk ocean freight rates fell significantly due to a continuing build-up of surplus tonnage.

WHEAT: Less than ideal conditions for some crops lower the projection of world wheat production in 2011-12 by 1m. tons, to 672m., but this is still 22m. more than the year before. Winter wheat in the US has been affected by dry conditions and rains are also needed in the EU and China. Spring wheat sowing is being hindered by wet soils in the US, Canada and Russia. This year’s bigger global harvest is expected to be matched by higher consumption: the world total is placed slightly above last month’s, at 672m. tons. World stocks are projected to remain steady, at 186m. tons. World trade will be lifted by larger milling imports in North Africa and Near East Asia as well as by anticipated strong global demand for competitively-priced wheat for feed. Shipments in 2011-12 are forecast at 126m. tons (122m.).

MAIZE: High prices are forecast to boost world plantings by 3% in 2011-12. Assuming yield growth returns to trend, global production is projected to increase by almost 5%, to a record 847m. tons. Potentially tight supplies and firm market prices are expected to limit consumption growth to 1.3%. Although meat demand will remain firm in number of developing countries, overall growth in maize use will likely slow, as livestock producers switch to wheat. Due to a projected standstill in demand from US ethanol producers, global industrial use of maize is forecast to slow to only 1.3%. A larger crop in the EU and increased competition from feed grade wheat is projected to result in 1% drop in world trade, to 94m. tons.

RICE: World rice production in 2010-11 is placed at a record 450m. tons. Ample availabilities will underpin rice consumption, set to expand by 2%, to 448m. tons, while the 2010-11 carryover is expected to reach an eight-year peak of 96.5m. tons (94.0m.). After last year’s solid rise, world trade is forecast to decrease by 2%, to 30.3m. tons reflecting a likely steep fall in imports by the Philippines.

Written by makanaka

April 29, 2011 at 18:13

Asia worries about food stocks and prices

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Protesters scramble for food and drink being distributed during mass demonstrations at Cairo's Tahrir Square in early February. Photo: Reuters/RFERL

Protesters scramble for food and drink being distributed during mass demonstrations at Cairo's Tahrir Square in early February. Photo: Reuters/RFERL

Bangladesh, South Asia’s biggest rice buyer, is in talks with India to buy grains on a regular basis to bolster food security as governments seek to avoid a repeat of the unrest that broke out when prices last soared, reported Bloomberg.

A long-term agreement will protect Bangladesh from possible defaults by private traders, who sometimes fail to meet their commitments if prices gain, Muhammad Abdur Razzaque, the nation’s food minister, said in an interview yesterday. “Rice prices rose this year in our country; people are suffering as they have limited income,” Razzaque said by phone from Dhaka.

Bangladesh’s plan underscores a drive by governments to strengthen their reserves to help manage the impact of food prices that advanced to a record last month, beating the jump in 2008 that spawned riots from Haiti to Egypt. This year’s surge has driven millions into extreme poverty, according to the World Bank, and contributed to unrest in the Middle East and Africa. “When we go for international tenders and prices suddenly rise, private suppliers sometimes fail to fulfill their commitments,” Razzaque said. “They don’t supply us and put us in trouble. It has happened.”

In the Philippines, Sen. Francis Pangilinan, chairman of the Senate committee on agriculture, has called on the country’s Department of Agriculture (DA) and the Department of Trade and Industry (DTI) to start preparing for the worst-case scenario as far as the prices of oil and other basic commodities are concerned in response to the volatile situation in the Middle East.

The Philippine Star quoted Pangilinan as having said that other nations have started preparing for an expected food and oil shortage, not only because of the turmoil in the Middle East but also because of the erratic weather patterns that the world has been experiencing. “Some Asian governments have already started to come up with measures to mitigate rising prices. Erratic weather patterns have started wreaking havoc on our agricultural lands. China and India are stockpiling on grains, which means we need to rely less on importation to secure our buffer. The price of oil continues to soar, it is a matter that requires our serious attention,” he said.

In today’s world of interlinked markets, a problem in one place quickly ripples out to others. Croplands in Russia, one of the world’s leading wheat producers, were devastated by fires during last summer’s record-breaking heat wave. Wheat harvests in Ukraine, also plagued by torrid weather, dropped 15 percent last year, a comment in Radio Free Europe/Radio Liberty reminded readers.

Both countries responded by introducing export bans that have exacerbated global shortages of the commodity. Partly as a result, world wheat prices doubled between June 2010 and January 2011. According to the World Bank, wheat prices have risen in the past six months by 54 percent in Kyrgyzstan, 45 percent in Bangladesh, and 33 percent in Mongolia.

In the oil-rich Caucasus republic of Azerbaijan, high prices have been sending citizens across the border into neighboring Georgia, where they are buying up meat, potatoes, onions, and apples. Nadeem Ilahi, head of an International Monetary Fund (IMF) delegation visiting Baku this week, warned that Azerbaijanis should expect overall prices to rise 10 percent in the course of this year — most of it due to the worldwide rise in the cost of food.

Written by makanaka

February 26, 2011 at 22:40

The global transmission of high food prices-World Bank’s February evidence

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Higher global wheat prices have fed into sharp increases in domestic wheat prices in many countries, the February 2011 Food Price Watch of The World Bank has said. The transmission rate of global wheat price increases to the domestic price of wheat-related products has been high in many countries, according to the report. “For instance, between June 2010 and December 2010, the price of wheat increased by large amounts in Kyrgyzstan (54%), Bangladesh (45%), Tajikistan (37%), Mongolia (33%), Sri Lanka (31%), Azerbaijan (24%), Afghanistan (19%), Sudan (16%), and Pakistan (16%). Several of these countries have a large share of calories consumed from wheat-based products, particularly for the poor. Global food prices continue to rise, though not uniformly for all grains.”

The World Bank’s Food Price Watch is produced by the Bank’s Poverty Reduction And Equity Group, Poverty Reduction And Economic Management Network. The World Bank’s food price index rose by 15% between October 2010 and January 2011, is 29% above its level a year earlier, and only 3% below its June 2008 peak. A breakdown of the index shows that the grain price index remains 16% below its peak mainly due to relatively stable rice prices, which are significantly lower than in 2008. The increase over the last quarter is driven largely by increases in the price of sugar (20%), fats and oils (22%), wheat (20%), and maize (12%).

Maize prices have increased sharply and are affected by complex linkages with other markets. In January 2011, maize prices were about 73% higher than June 2010. These increases are due to a series of downward revisions of crop forecasts, low stocks (U.S. stocks-to-use ratio for 2010-11 is projected to be 5%, the lowest since 1995), the positive relationship between maize and wheat prices, and the use of corn for biofuels.

Ethanol production demand for corn increases as oil prices go up, with sugar-based ethanol less competitive at current sugar prices. Recent United States Department of Agriculture (USDA) estimates show the share of ethanol for fuel rising from 31% of U.S. corn output in 2008-9 to a projected 40% in 2010-11. Increased demand for high fructose corn syrup from countries such as Mexico, as they substitute away from higher priced sugar, also contributes to higher demand for corn. Prospects of easing in this market depend partly on the size of the crops in Latin America, particularly Argentina, which has been affected by unusually dry weather due to the La Nina effect, and the extent of import demand from China in 2011 as well as oil and sugar price trajectories.

Domestic rice prices have risen sharply in some countries and remained steady in others. The domestic price of rice was significantly higher in Vietnam (46%) and Burundi (41%) between June–December 2010. Indonesia (19%), Bangladesh (19%), and Pakistan (19%) have increased in line with global prices. These Asian countries are large rice consumers, especially among the poor. Rice prices have increased in Vietnam despite good domestic harvests. This is primarily due to the depreciation of the currency, which has fuelled overall inflation and expectations of higher demand from large importers and led  to the minimum rice export price being raised by the Vietnamese government. Rice price increases in Sri Lanka (12%) and China (9%) have been relatively moderate in the second half of 2010, while in Cambodia and the Philippines the retail price of rice remained largely unchanged during this period.

Largest Movers in Domestic Prices, June to December 2010
Wheat
Kyrgyzstan (retail, Bishkek) 54%
Bangladesh (retail, national average) 45%
Tajikistan (retail, national average) 37%
Mongolia (retail, Ulaanbaatar) 33%
Sri Lanka (retail, Colombo) 31%
Azerbaijan (retail, national average) 24%
Afghanistan (retail, Kabul) 19%
Sudan (wholesale, Khartoum) 16%
Pakistan (retail, Lahore) 16%

Rice
Vietnam (retail, Dong Thap) 46%
Burundi (retail, Bujumbura) 41%
Bangladesh (retail, Dhaka) 19%
Pakistan (retail, Lahore) 19%
Indonesia (retail, national average) 19%
Mozambique (retail, Maputo) 14%

Beans
Burundi (retail, Bujumbura) 48%
Cameroon (retail, Yaounde) 43%
Uganda (wholesale, Kampala) 38%
Kenya (wholesale, Nairobi) 22%

Maize
Brazil (wholesale São Paulo) 56%
Argentina (wholesale, Rosario) 40%
Rwanda (wholesale, Kigali) 19%

South-east China evacuation as Typhoon Megi approaches

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Typhoon Megi analysis by Japan Meteorological Agency's Tropical Cyclone Information service

Xinhua is reporting that hundreds of thousands of people have been evacuated from coastal areas of south-east China in the path of Typhoon Megi. Quoting disaster relief authorities, the report says more than 150,000 people in Fujian Province had been evacuated, and 53,100 fishing boats have been recalled to port.

Megi is forecast to make landfall on the east coast in Guangdong Province around Saturday, according to the Fujian Provincial Meteorological Department. Authorities have issued a red warning, the highest of four warnings, that the typhoon could cause huge waves that could devastate coastal sea areas, including Guangdong, Fujian and the Taiwan Strait.

The red warning gives local authorities six hours to evacuate residents at risk and implement storm precautions, and order schools, shops and airports to close and all vessels to return to port. Meanwhile, the State Oceanic Administration has issued a yellow storm surge warning, which gives local authorities 12 hours to prepare for a storm, reporting that waters in Dongshan, Chongwu and other tidal stations in Fujian Province will exceed or approach the warning levels.

Hong Kong Observatory's satellite image of Typhoon Megi, 1600 HK time on 21 October 2010

“The storm surge could be so devastating that buildings, docks, villages and cities could be destroyed by it,” said Bai Yiping, director of South China Sea Forecasting Center of the State Oceanic Administration. Megi could cause a “50-year storm surge” if it landed as a severe typhoon on the coastal areas in Guangdong, Bai said. Megi is the 13th typhoon and possibly the strongest to hit China this year. Southern provinces, including Hainan, Guangdong, and Fujian, are bracing for heavy rains and strong winds.

The Hong Kong Observatory said: “At 7 p.m. (21 october), Severe Typhoon Megi was estimated to be about 420 kilometres southeast of Hong Kong (near 20.2 degrees north 117.5 degrees east) and is forecast to move north at about 8 kilometres per hour gradually edging closer to the coast of eastern Guangdong.” The HK Observatory’s MTSAT-2 image above was captured at 16:01 Hong Kong Time on 21 Oct 2010 and clearly shows the immense size of Megi as it approaches the China coast.

Food production and grain trade, May 2010

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Vendors in Mapusa, Goa

Vendors in Mapusa, Goa. The middle basket contains 'nachne', local millet

This is to be a monthly posting from now on. It will for a start draw on three main sources of global analysis: the Food and Agriculture Organisation (FAO), the International Grains Council, and the US Department of Agriculture Economic Research Service. Extracts from the three major sources run below, but this is to be placed in global context by the food production and supply situation in two of our neighbours in South Asia, Nepal and Afghanistan. There is hunger and displacement in Pakistan and Sri Lanka too, and I’ll update this posting with relevant reports. Also contrast the global views with the announcement from the US Department of Agriculture, which comes at the end of the list of extracts.

[1] “Nominal prices, in US dollar terms, of staple food commodities, mainly rice and wheat, have generally declined from the 2008 peak but remain significantly above their pre-2008 food-crisis levels in several countries. The price impact on overall food consumption of the vulnerable population is still expected to be substantial. Prices of rice have been increasing in India since the second half of 2008 and currently are above their levels of a year ago 5 percent in Chennai to 42 percent in Patna.”
“Retail prices of rice have also been rising since late 2009 in Bangladesh, the Philippines, Pakistan and Myanmar. In exporting countries such as Thailand and Viet Nam, rice prices (in local currencies) have declined since January 2010 due to strong international demand. Prices of wheat in India and Pakistan have also been rising steadily since October 2008. Recent increases are attributed to concerns over the unfavourable harvests of the current 2010 Rabi season. In Afghanistan, prices of wheat have been coming down since the 2009 bumper harvest in the country.” From FAO Crop Prospects and Food Situation May 2010

[2] “The forecast of world wheat production is increased by 2m. tons, to 660m. (676m.). World wheat consumption is forecast to grow by 1%, to a record 654m. tons, unchanged from last month. The forecast of global stocks is raised by 2m. tons, to a nine-year high of 201m. (195m.), with much of the increase in China and India.”
“World rice production in 2009/10 is estimated to decline for the first time in seven years, by 1%, to 442m. tons, mostly reflecting a reduced main crop in India. At 442m. tons, rice consumption will expand by 1%, in line with the global population trend. Inventories in China are expected to rise, but those in India and the five leading exporters are forecast to decrease. World trade in calendar 2010 is projected to recover by 5%, to 29.9m. tons, underpinned by larger shipments to Far East Asian markets.” From International Grains Council Grain Market Report 2010 May

FAO rice retail prices, from FAO Crop Prospects and Food Situation May 2010

FAO rice retail prices

[3] “Global wheat supplies for 2010/11 are projected 2 percent higher with larger year-to-year beginning stocks more than offsetting lower expected production. Global 2010/11 wheat production is projected at 672.2 million tons, down 1 percent from 2009/10 and the third largest production on record if realized. Larger projected production in EU-27, South America, and the Middle East is more than offset by expected declines in FSU-12, North Africa, South Asia, China, Canada, and Australia.”
“Global coarse grain production for 2010/11 is projected at a record 1,129.8 million tons, up 2 percent from 2009/10. Most of the 27.4-million-ton increase in coarse grains production results from higher projected foreign corn production, up 19.9 million tons from 2009/10. Higher expected foreign corn area and rising yields combine with higher U.S. area to boost global corn production to a record 835.0 million tons, up 26.5 million from 2009/10. Corn production is projected higher year-to-year for China, Mexico, India, Russia, EU-27, Ukraine, and Canada.”
“Global 2010/11 rice production is projected at a record 459.7 million tons, up 17.6 million or 4 percent from 2009/10. World disappearance (consumption and residual) is projected at a record 453.4 million tons, up 10.9 million or 2 percent. Large crops are projected for most of Asia including record or near-record crops in Bangladesh, Burma, Cambodia, India, Indonesia, the Philippines, Thailand, and Vietnam. Additionally, large crops are forecast for the U.S., EU-27, and Nigeria.” From US Department of Agriculture, World Agricultural Supply and Demand Estimates, 11 May 2010

In Nepal, food supplies are running low in the western hills. An IRIN report from Kathmandu (21 May 2010) says: “Food security for more than 600,000 people in the western hills of Nepal is set to deteriorate, aid agencies warn. With already low agricultural production in the more food-insecure areas, inflation is exacerbating matters further. “A lot of villagers are opting for more desperate coping mechanisms,” Richard Ragan, country representative for the World Food Programme (WFP), told IRIN in Kathmandu. Many villagers are already reducing the number of meals they eat each day, cutting portions, or migrating to urban areas or India for work, he said. ‘In a desperate attempt to buy food, families are even selling their livestock and household assets and the out-migration [to Nepali cities and India] has increased already by 40 percent,’ Ragan said.”

Gulmohur trees in bloom, May in Maharashtra

Gulmohur trees in bloom, May in Maharashtra

In Afghanistan, farmers face a tough choice: wheat, fruit or saffron? An IRIN report from Kabul (20 May 2010) says: “Pointing to his flourishing wheat field in the western Afghan province of Herat, Abdullah says he regrets cultivating the crop. Wheat is very cheap,” he told IRIN, adding that he would hardly make 50,000 Afghanis (about US$1,050) from his two hectares. “I won’t be able to feed my family properly with this income.” Several farmers contacted by IRIN in Helmand, Kandahar and Balkh provinces had similar sentiments. Wheat is considered a strategic crop and a staple food, but imports are always required, even when there is a bumper harvest. About seven million (over 24 percent of the country’s estimated 27 million population) are food-insecure and many others are highly vulnerable to food price fluctuations, according to aid agencies.”

Here is the announcement from the US Department of Agriculture: “US farmers, ranchers and producers are poised to achieve $104.5 billion in sales – an $8 billion increase over last year and the second highest level in history.

  • The trade surplus in agriculture is now forecast to reach $28 billion, the second highest ever achieved.
  • The report comes on the heels of an historic six-month pace by U.S. agricultural exports, which shattered records with $59 billion in sales in the first half of the fiscal year and generated a 14 percent increase over the same period last year.
  • U.S. agricultural exports to China grew by nearly $3 billion during the first half of the fiscal year to $10.6 billion, making China the United States’ top market for this period. In total, exports to Asia have reached record highs, led by strong increases in China and Southeast Asia. Other outstanding country and regional customers include the European Union, Turkey, and North Africa.”