According to the FAO’s latest Food Price Monitoring and Analysis (FPMA) Bulletin, September 2024 saw a rise in international wheat and maize prices, driven by unfavorable weather conditions affecting production in key export regions. In contrast, global rice prices recorded a slight decline.

Global wheat prices experienced a 5% increase last month, spurred by weather disruptions in major wheat-exporting regions. In Canada, overly wet conditions delayed harvests, while Europe faced a notable production forecast cut due to adverse weather, which drove up prices. In the U.S., unseasonably warm and dry weather prompted an 8% rise in benchmark wheat prices. However, competitively priced wheat from the Black Sea region, along with lower prices from Argentina and Australia, helped to moderate the global wheat price surge.

Maize prices also rose in September, led by a 10% increase in the United States, where low water levels in the Mississippi River raised transport costs to key export hubs. In Brazil, shipping delays on the Madeira River and strong domestic demand pushed up maize prices by 6%. Argentina saw a 4% rise in maize prices, attributed to its strong export pace.

RICE PRICES SLIP AS ASIAN MARKETS REMAIN QUIET

The FAO All Rice Price Index dipped by 0.7% in September, reflecting quieter trading in major Asian markets and ongoing harvests in Pakistan and Vietnam, which applied downward pressure. In Thailand and Vietnam, minimal trading activities outweighed the impact of currency strength against the U.S. dollar. Meanwhile, in the U.S., rice prices declined for the third consecutive month as the long-grain harvest advanced smoothly.

This latest update underscores the varied effects of weather and logistical factors on global food markets, with wheat and maize prices under upward pressure, while rice markets remain subdued amid stable production in Asia.