Drought conditions in Argentina and Brazil added to corn export prices in January: FAO

The FAO Cereal Price Index averaged 140.6 points in January, up marginally (0.1%) from December and 15.6 points (12.5%) above its level one year ago, the January report reads.

World wheat prices eased in January, down 3.1%, with increased seasonal supplies from large harvests in Australia and Argentina. However, support from continued strong demand amidst tight global availability of higher-quality wheat along with uncertainty over exportable supplies prevented prices from declining further.

By contrast, corn export prices were firmer in January, gaining 3.8% since December, mostly on concerns of persistent drought conditions in the southern hemisphere, namely Argentina and Brazil; spillover effects from the wheat market added upward pressure on corn prices.

Among other coarse grains, international sorghum prices also rose in January, in line with corn price trends, while barley quotations were slightly lower.

Previously reported that the preliminary estimates of grains production in Ukraine in 2021/22 stood at 83.8 mln t. The largest markets for Ukrainian grain in 2021 were China, Egypt and Turkey.

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