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 International prices of rice rose sharply between March and April. The price of Thai white rice (100% second grade, f.o.b. Bangkok) increased 50 percent in the past month reaching USD 848 per tonne. Prices reacted to more action take by countries to halt or slow the pace of their exports, at a time when large importers were active on the market to buy rice. A weakening US dollar and very high prices of other basic food commodities lent further strength to world rice prices. Although the arrival of new crops in countries such as Bangladesh, Brazil, India, Thailand or Viet Nam should ease the current market tightness, major exporting countries would need to lift their export restrictions for prices to fall back to more normal levels.
International wheat export prices in April declined from the record high levels in March (in nominal terms). The price of US wheat (No.2 Hard Red Winter, f.o.b. Gulf) averaged USD 389 per tonne, 19 percent down from March, but still USD 180 per tonne, or 86 percent, above the April 2007 average. In futures markets, prices have also decreased in recent weeks. Firmer prospects for a significant increase in global wheat output in 2008, reflecting favourable growing conditions so far in the northern hemisphere, as well as the announcement of a significant increase in export quotas by Ukraine, a large grain exporter, put downward pressure on prices.
International maize prices continued to increase steadily in April. The price of US maize (No. 2 Yellow, Gulf) averaged USD 248 per tonne in April, 6 percent more than a month ago. At this level US maize prices are about USD 78 per tonne up or 46 percent more, than the same period last year. Tightness in global supplies, coupled with expectation of lower area planted and delays in planting due to wet weather in the United States, the world’s biggest producer, provided support.
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