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Country Briefs

  Uruguay

Reference Date: 25-October-2016

FOOD SECURITY SNAPSHOT

  1. Cereal production in 2016 forecast close to last year’s level

  2. Cereal exports forecast to increase in 2016/17 marketing year

  3. Prices of wheat flour declined in September, rice prices unchanged from their high level

Cereal production in 2016 forecast close to last year’s level

Cereal production in 2016 is forecast at close to 3.4 million tonnes, moderately below last year’s level and for a second consecutive year, below the five‑year average. The below‑average harvests mainly reflect reduced maize and wheat plantings in the past two years as a result of low market prices. Maize production in 2016 has been preliminarily estimated at 495 000 tonnes, 3 percent above last year’s level but below the five‑year average. Maize plantings in 2016 were estimated at 88 000 hectares, 6 percent up from 2015, but well below the average of about 120 000 hectares in recent years as a result of low market prices and high domestic availabilities. Rice production in 2016 is estimated at 1.3 million tonnes (paddy), 7 percent down from last year. The decline mainly reflects excessive rainfall at the beginning of the season, which adversely impacted the crop. The harvest of the 2016 wheat crop has begun. Wheat production for 2016 is forecast to increase moderately by 4 percent as plantings are estimated to have remained close to last year’s level.

Cereal exports forecast to increase in 2017 marketing year

Total cereal exports in the 2017 marketing year (January/December) are preliminarily forecast at almost 1.8 million tonnes, a sharp increase from last year’s low level, but still below the five‑year average. The increase in exports mainly reflects anticipated higher rice and wheat sales during the marketing year.

Wheat flour prices declined in September, rice prices unchanged from their high level

Domestic prices of wheat flour declined in September with the beginning of the harvest and were well below their year earlier levels, reflecting the favourable prospects of the 2016 harvest.

Rice prices in September were unchanged from the high level of the previous month and from a year earlier. Prices are being supported by this year’s reduced output and high export demand.