GIEWS Update: International prices of grains averaged 23 percent higher in July than June- maize at record levels
Export prices of maize increased sharply in the first three weeks of July and remained firm to the end of the month. The benchmark US maize price (Yellow, No.2, f.o.b.) averaged USD 330 per tonne, up 23 percent from June and a record high. The increase in July largely reflected continuous deterioration of crop conditions in the main growing areas of the United States, affected by severe drought. Slow down of world demand in recent weeks due to higher prices and global economy concerns, limited the gains somewhat.
International prices of wheat followed a similar trend to those of maize through July, with the benchmark US wheat price (No.2 hard Red Winter, f.o.b.) averaging USD 352 per tonne, 23 percent higher than in June and 15 percent above the July 2011 level. Further deterioration of prospects for the 2012 wheat crop in the Russian Federation and high maize values underpinned prices.
Recent concerns about the impact of dry weather on the final area planted to wheat in Australia and Argentina also provided support. However, the early start of the spring wheat harvest in the United States weighed on prices in the second part of the month.
The benchmark Thai rice export price (Thai white rice 100% B) decreased in July averaging USD 600 per tonne, 3 percent below the level in June but still 9 percent higher than in July 2011. The decline in July mainly reflected slow pace of exports from the country. Prices of other origins, however, have shown a tendency to strengthen.