The FAO Food price index dropped to an 11-month low in October, declining 4%, or nine points, to 216 points from September. Nonetheless prices still remain generally higher than last year and very volatile, FAO said.
The coming 2011/12 wheat crop of Argentina will reach 13.5 million tons instead of the 15 million forecasted last July, reported the US Agriculture Department, USDA.
Soybean was king of corps in Uruguay last summer with 1.5 million tons planted in 862.000 hectares and with an average yield of 1.788 kilos per ha, according to the latest data from the country’s Agriculture Statistics Office, DIEA.
Argentina liberated 450.000 tons of wheat for export, a decision which is believed to be closely linked to Sunday’s election in the farming province of Santa Fe where the government of President Cristina Fernandez de Kirchner suffered a major defeat.
Argentina’s 2010/2011 grains and oilseeds harvest is estimated to have reached 100.46 million tons, which is above last year’s according to the latest technical report from the Ministry of Agriculture released this week.
A good crop year for Argentine farmers and the government: export revenue will be up 4 billion US dollars and the tax man will bag an additional 888 million US dollars according to estimates from local grain dealers.
Countries anxious to avoid a repeat of the 2007-2008 global food crisis when they were caught short of grain supplies, have stepped up their buying programs and are driving prices to new highs.
United States farmers have planted the biggest crop in thirteen years according to a report released by the US Department of Agriculture which estimated the area sown to the eight major field crops in 2011 at 103.3 million hectares.
North Africa and Middle East civil unrest can be expected to spread to several other countries if as anticipated the FAO Food Prices Index for January 2011 confirms the December 2010 tendency when the “basket” of food staples reached a new peak.
Wheat sales for the 2009-2010 season in Argentina are primarily from the crop harvested through January 2010, which was curbed by water shortages, reports Bloomberg.