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Domestic Price Warnings

Countries where prices of one or more basic food commodity are at abnormal high levels in main markets.
Price warning level:  High   Moderate [Based on the Indicator of Price Anomalies (IPA)]

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Argentina

10/07/2019

Prices of grains continued to increase in June and well above year-earlier levels

Wholesale prices of wheat grain continued to rise in June following seasonal trends with planting of the 2019 crop currently ongoing. The upward pressure was exacerbated by heavy rains in some areas, which hampered sowings. However, the area planted is forecast to increase by 3 percent from last year’s already high level and crop prospects remain overall favourable. Prices were around 50 percent above their values a year earlier, mainly due to robust demand for exports, supported by the significant depreciation of the country’s currency, which increased competitiveness of Argentinean products in the international market. Exports of wheat in the 2018/19 marketing year (December/November) are forecast at a near record level of 13.5 million tonnes. High prices of wheat grain contributed to a further increase in the retail prices of wheat flour and bread, which were about 100 and 70 percent higher year on year, respectively. Wholesale prices of yellow maize also increased in June and were more than 50 percent above their levels a year earlier, despite the ongoing harvest of the 2019 crop, expected at a bumper level. This reflects large sales for export, with shipments during the second quarter of 2019 recording a peak of 15.4 million tonnes.

Region: South America