The quintal of white corn has become 10% more expensive in the last two weeks in Guatemala, a rise that is explained by the decrease in supply that derives from last year's low harvests.
The Price Report of the Planning Directorate of the Ministry of Agriculture, Livestock and Food (Maga) states that between June 6 and 19, the price of a quintal of white corn went from $19.35 to $20.45.
In the context of a drop in production, in Costa Rica the government decreed a rise from $36.18 to $37.65, the price of a 73.6 kg sack of rice in bulk placed in the industrial plant.
The agreement modifying the price to the rice producer was published on June 5 in La Gaceta, and the government's action is taken in a context of low local production, because between the 2016-217 and 2017-2018 harvests, the volume produced decreased by 21%.
The FAO food price index registered an interannual decrease of close to 1%, due to weakening in most markets, as a result of tensions in international trade relations.
From the monthly FAO report:
The FAO Food Price Index* (FFPI) averaged 173.7 points in June 2018, down 2.4 points (1.3 percent) from its level in May, representing the first month-on month decline since the beginning of this year.
In February, the FAO food price index fell by almost 3% in year-on-year terms, due to a drop in prices of sugar and vegetable oils.
From the monthly report on the FAO food price index:
The FAO food price indexstood in February 2018 at an average of 170.8 points, that is to say, 1.1% (or 1.8 points) more than in January, although it is still 2.7% less than its value in the same period last year. Higher international prices for dairy products and cereals contributed to the inter-monthly rise in the value of the index, while prices for sugar and vegetable oils declined and meat prices remained stable.
Between 2014 and 2017 in the Dominican Republic, the areas dedicated to the cultivation of agricultural products of high local consumption such as red beans and cassava, went down by 43% and 17%, respectively.
According to figures from the Ministry of Agriculture, as of November 2017 registrations for red bean plantings numbered 188 thousand tareas (one tarea is approximately 600 square meters), a figure that is 43% lower than the 332 thousand tareas reported at the end of 2014.As a result, the volume produced fell from 476 thousand hundredweight in 2014 to 412 thousand reported in the period from January to November 2017.
In the region climatic effects and problems of smuggling have caused scarcity and a rise in cattle prices, the same as is occurring on the international market.
Added to the shortage of cattle is a decline in sales, both regionally and internationally, where "...Stock market contracts for cattle on July 13 performed positively, rising to the maximum limit allowed by the exchange of $3 and almost $4 ", reports Panamaamerica.com.pa.
It has been projected that the international price, which is trading above $3,200 a metric ton, will maintain its upward trend, favoring Nicaraguan producers.
Demand for chocolate is pushing up grain prices, which is complemented by a decline in cocoa production in other countries engaged in farming.
Manfred Günkell, general manager of Ritter Sport in Nicaragua, told Elnuevodiario.com.ni that "...
In October, the consumer price index registered a monthly increase of 0.12%, putting annual inflation at 6.63%, up from 6.49% at the end of September.
From a report on inflation by the Central Bank of Nicaragua:
The October national inflation registered a monthly increase of 0.12% (-0.001% in December 2013). The result of inflation for the month was derived from increases in the prices of some goods and services in the areas of food and non-alcoholic beverages; housing, water, electricity, gas and other fuels; and health, which together accounted for 0.222% of the observed variation. In contrast, the transport division registered a fall of 1.81%.
The grain was quoted on the commodities exchange in New York in the week of July 21st at $3,234 per ton, the highest value in the last three years.
Growing global demand, driven by the sustained increase in of chocolate consumption in Asia is the main trigger for the rising price of the grain in commodity exchanges around the world.
"...Although crops are abundant in West Africa, the largest producing region, demand outstrips supply.
Costa Rica and Honduras are the countries with the highest rates as of July 27th, 2014 for red beans, costing $2,133 and $1,695 a metric ton, respectively.
The shortage of beans has raised prices across the region and all countries have been forced to authorize emergency imports in order to supply markets.
After Costa Rica and Honduras, as reported by the Agricultural Council (CAC) "...Guatemala is in third place, with $1,615 a metric ton (MT) and then Nicaragua with $1,609.35. The lowest prices were quoted in late May in El Salvador, with U.S. $1413.04 MT.
The future price of coffee has reached its lowest level in the last 5 months in response to an in increase in the production of grain in Brazil.
The slowdown in demand in the northern hemisphere due to the arrival of summer and the grain harvest season in Brazil in July explain part of the reduction in future prices on the international market.
Christian Wolthers, president of Wolthers Douque, an importer in Fort Lauderdale, Florida, told Bloomberg.com that "... 'this month we expect a significant increase in supply, while in the north people reduce their coffee consumption and there is less activity on the part of roasters.'"
The Coffee Institute estimates that the 2014 - 2015 harvest will see an increase of 141,200 cwt compared to the previous one.
The use of better fertilizers and the implementation of measures to prevent diseases such as rust are the factors that explain the improved results expected from the 2014-2015 harvest season in the country.
The rise in international prices and the recent behavior of the climate also favors the sector.
Although the poultry industry offered to buy the excess supply of over 1,500,000 ctws already acquired, producers are refusing to sell them at less than $16 per hundredweight.
Added to the difference in the price paid per hundredweight of corn are complaints made by producers over the import of 20 million ctw made by poultry farmers when the former group were preparing to grow the grain.
The future price fell to $169 from $215, the maximum price reached in April, after it was proven that the damage to crops caused by drought in Brazil was not as severe as anticipated.
Contrary to what was estimated a few months ago, the damage done to the coffee plantations in Brazil was not so serious as tol drastically affect the final production of the 2013-2014 harvest.