The drought in Brazil, the country which exports almost half of the world's sugar, caused prices of the grain on the international market to rise to $444 a ton.
The drought in Brazil led to an increase in the international price of sugar. The South American country exports almost half of the grain in the world.
The lack of rain also caused an increase in the international price of coffee.
A quintal of white maize increased by $0.64 compared to March, while for black beans the increase is $0.39 per quintal.
According to the United Nations Food and Agriculture Organization (FAO), because the harvest of white corn has ended, the grain is trading at $15 per quintal, while black beans are $48 per quintal.
According to the explanation of Patricia Lopez, a farmer in Coban, Alta Verapaz, "for the moment supply is being maintained in the markets."
The key to the global soybean market is China, which consumes 60% of world exports, and it is very likely to continue growing.
An article by Bloomberg News reports that "soybean purchases by China, which buys more than 60% of global exports, are heading towards depleting North American reserves and reducing the amount available to importers in Southeast Asia, said the American Soybean Association, ASA"
Two months of severe drought in the United States, the world's largest producer of soybeans and corn, has raised prices to record highs.
Yesterday, August 21, soybean prices opened at a record high: a bushel for November delivery, the current benchmark contract, now costs up to $17.26 per bushel (about 25 kg).
The situation is similar with corn, which approached $8.38 in session.
The prices of products derived from these grains have gone up, with supply having been severely affected by the worst drought in the U.S. in the last 25 years.
An article in Nacion.com reports on the rapid changes that the international price of soybeans, corn and wheat have suffered in the last month:
"Corn went from $572.88 per metric ton, on 24 June, to $814.30 a ton at the close of yesterday on the U.S.
The FAO has warned that the increases in corn prices may affect food security in Central America and Mexico.
Grain prices in the region have soared over the last year. Between June 2010 and June 2011, the wholesale price of white maize increased by 56% in Guatemala, 112% in El Salvador and 65% in Mexico.
These increases have had a strong impact on the staple foods: The average food inflation in the region was between 7% and 8% between April and June.
Sugar producers have agreed to increase the price by Q0.25 ($ 0.03) per 500grams, in response to high prices in Mexico.
The price of the product was set at Q4 ($ 0.51) per 500 grams, the first increase since May 2010, when the stock went from Q3.75 to Q3.5 per half kilo.
In the industrial sector increases have not been announced, said Luis Mejia, manager of Meresa, which distributes sugar to large industrialists.
Black bean prices have increased 11% since January, reaching $ 67.6 per quintal, the highest price over the last five years.
Compared with February 2008, the price increase is 83%.
"The main factor pushing the price upward is the shortage of local inventories in many regions since December 2010," reported Diario de Centro America.
The increases are also attributed to variability in rainfall, associated with the effects of climate change.
Corn prices continue to rise in Guatemala, reaching $ 22.5 per quintal.
This is the highest price on record since 2007 and according to Luis Enrique Monterroso, from the food unit of the Human Rights Office “it is evidence that the price spike is not a result of speculation but of actual losses in this year´s harvest”.
Meanwhile, import orders are on the rise, as 82.000 metric tons were authorized for import in February, and most of it will be allocated to food industries.
Corn shortage is adding to the already existing shortage of bean. Escalating international prices are threatening millions of poor Central Americans.
January global data shows that food prices continue to rise and are already surpassing the 2008 prices.
And while the Central American economies are benefiting in part by the increase, for example by increasing revenues from coffee and sugar exports, they have not secured supply of basic traditional consumer products such as wheat, corn and beans; the basic foods of poor population. The already high prices are worsened by poor harvests due to bad weather.
In times of low cotton production, the Latin American textile industry protests against restrictions imposed on exports from India.
The price of cotton has risen more than 70% so far this year, as a result of lower production, a situation that profoundly affects the textile industry.
India, a major producer of cotton and textile products, imposed in April restrictions on cotton exports, which contributed to increase the price for textile producers from other countries.
FAO anticipates that recent rise in food commodity prices will continue and that future consumers will pay more for their food.
In its "Food Outlook", November 2010, the World Food Organization points out that its price index rose 34 points (+20%) between June and October, near the historical record of June 2008.
FAO says that the price increase is "alarming", that is occurring at a rate much higher than in the crisis of 2007/08, and that is the result of low production estimates in many producing countries.