A news release yesterday from the World Bank stated that, “Global food prices remain high and volatile, hitting the poorest countries hardest and adding to the strains facing the global economy, according to the World Bank Group’s new Food Price Watch released ahead of the G-20 Summit in Cannes, France. While the Bank’s food price index has dropped 5 percent from its February 2011 peak and dipped marginally in September by one percent, it remains 19 percent above its September 2010 levels.
“‘The food crisis is far from over,’ said World Bank Group President Robert B. Zoellick, who has urged the G-20 to put food first. ‘Prices remain volatile and millions of people around the world are still suffering. The World Bank has been working closely with the French Presidency of the G-20 and our partner international organizations on actions to protect the most vulnerable from the dangers of food price volatility, while also addressing some of its root causes. Let’s remember, averting crisis is not just about banks and debt. Millions of people around the world face a daily crisis of hunger and malnutrition. At Cannes, the G-20 can and should take steps to address their needs.’”
“Tuesday’s report on the survey of supply managers and executives says the index dropped to 49.9 in October, compared with 52.2 in September.”
With respect to crop insurance, DTN Executive Editor Marcia Zarley Taylor reported yesterday at the Minding Ag’s Business Blog that, “Final harvest payment rates for most spring planted crops were finalized by the Risk Management Agency today. As expected, Midwest corn growers will benefit from the price rally that lifted markets during the month of October when RMA averages the daily closes on December futures contracts. Corn growers with a harvest price clause in their contracts will be compensated at $6.32, up from the $6.01 spring planting price. (Texas corn rates were settled earlier at $6.94).
“In contrast, in most of the country soybeans’ fall price averaged $12.14/bu., lower than the spring rate of $13.49, so compensation on lost bushels will be made at the higher spring rate.”