MONTHLY NEWS REPORT ON GRAINS ISSUE 51 – MAY 2009 IN THE NEWS: • • • • • • • • • • • • •

Grain Market Report Summary (IGC) Kazakhstan May Provide up to 1.5 Million Tons of Grain Per Year for Biofuel Production Ukraine Offers Libya Project on Production and Export Australia ’09 Crop Production the Lowest in 5 Years Due to Drought Extra Atlantic Tonnage Helps to Arrest Spot Rate Surge Russia Seeks More Asia Grain Exports, Black Sea Links China to Start 2009 Minimum Price Wheat Purchase Plan May 21 Egypt to Start Wheat Farms in Northern Uganda Russia Broke the Absolute Record of Grain Export Volumes India, Pakistan Closer to Wheat Export After Years Wheat Groups to Synchronize Introduction of Biotech Wheat Argentina Will Have No Wheat to Export in 2010, Growers Say Wheat Holds Up Well as Global Exporting Collapses

UPCOMING EVENTS: •

International Grains Council: Grains Conference 2009: The Global Economic Crisis – What Impact on Grains and Oilseeds; London, 9 June, 2009

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World Grain Forum: St. Petersburg 5-7 June, 2009

WEB RESOURCES (NEW): •

Documents from: Investing in Food Security in a Global Economy - OECD/FAO High Level Meeting 5-6 May 09 http://www.oecd.org/document/43/0,3343,en_2649_34621_42784171_1_1_1_1,00.html

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New Market and Trade Sections of the FEWS NET Website http://www.fews.net/Pages/markettrade.aspx?loc=3&l=en

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World Food Situation Portal: http://www.fao.org/worldfoodsituation/ Portail sur la situation alimentaire mondiale: http://www.fao.org/worldfoodsituation/accueil.html?L=1 Portal sobre la situación alimentaria mundial: http://www.fao.org/worldfoodsituation/inicio.html?L=2

============================================================================ IN THE NEWS: ============================================================================ 29/05/09– International Grains Council GRAIN MARKET REPORT SUMMARY World prices of grains and oilseeds advanced strongly in May, driven by weather-related crop concerns as well as a general rise in commodity, energy and equity markets, with futures exchanges attracting sizeable new fund activity. Although the world wheat crop estimate is increased because of significant upward

revisions for China and Russia, markets reacted nervously to the very difficult spring planting conditions in parts of North America and overly dry weather in southern and eastern Europe. Heavy demand for remaining Black Sea region supplies of feed and milling wheats added to the more bullish market picture. The first official US forecast of maize (corn) supplies and demand in 2009/10 added to concerns about continued tight availabilities of this grain, especially as the major planting delays in the country’s eastern corn belt suggested that more area might be switched to soyabeans and that yields may be lowered. US export sales, while remaining well below last year’s, were also strong. Full summary of report is available at: http://www.igc.org.uk/en/publications/grainmarketreport.aspx ============================================================================ 27/05/09 – World-Grain.Com KAZAKHSTAN MAY PROVIDE UP TO 1.5 MILLION TONS OF GRAIN PER YEAR FOR BIOFUEL PRODUCTION In future Kazakhstan may provide up to 1.5 million tons of 4th grade and feed grain a year for biofuel production, Kazakh Minister of Agriculture Akylbek Kurishbayev said. "According to our estimates, each year we harvest approximately 1.5 million tons of 4th grade and offgrade grain, which is the raw material for biofuel," Kurishbayev told a plenary Majilis session on Wednesday. According to him, up to 350 million liters of biofuel may be produced out of this quantity of grain. "Taking into account domestic demand that makes up 150-200 million liters of biofuel, the rest may go for export in the nearest future," Kurishbayev said. "Biokhim plant successfully operates in Kazakhstan and produces 4.4 million liters of bio-ethanol that are being exported to European countries," he said. Moreover, according to Kurishbayev, Kazakhstan introduced tax remissions for development of bio-ethanol production. "Following the government's decision, excise taxes for bio-ethanol were lowered to 0.1 tenge per liter. ============================================================================ 26/05/09 – World-Grain.com UKRAINE OFFERS LIBYA PROJECT ON PRODUCTION AND EXPORT Ukraine has offered Libya to expand cooperation in the farm sector and implement a project to grow, store and ship up to four million tons of grain a year, Ukrainian Prime Minister Yulia Tymoshenko has said. "We want to offer you an integrated project which will encompass a range of activities starting from production to the transportation up to four million tonnes grain [a year]," she said while opening talks in the Libyan capital Tripoli on Monday. Tymoshenko said that Ukraine had proposed that Libya should consider the possibility of farming at 100,000 hectares of land, and that it has already found sites for placing grain elevators. "Also, initially we would like to propose there be a special zone at a port for grain shipment," she added. Tymoshenko noted that this project could include measures in cattle breeding as well. According to her, Tripoli could use the project both for the procurement of grain for Libya and for exporting it from Ukraine to other countries.

============================================================================ 22/05/09 – World-Grain.com AUSTRALIA ’09 CROP PRODUCTION THE LOWEST IN 5 YEARS DUE TO DROUGHT Australia's crop production has risen overall but is still one of the lowest in five years due to the lingering effects of the drought, figures show. The Australian Bureau of Statistics (ABS) said that while overall crop production had risen in 2007/08, there were falls in cotton production and a near complete suspension of rice production. Drought conditions and industry adjustments have also led to a decline in livestock, with sheep and lambs at yet another historic low, the ABS said. The major contributor to the continued low levels of crop production was a lack of water. The ABS figures showed that improved weather conditions resulted in wheat production increasing by 25 per cent to 13.6 million tonnes in 2007/08. Wheat production rose across all major states, with the largest increases in Victoria, up by 127 per cent to two million tonnes, and South Australia, up by 59 per cent to 2.3 million tonnes. Western Australia produced the most grain of all the states in 2007/08 at 5.8 million tonnes. Barley, oat and sorghum production also saw significant production increases. However, there were drops in production of cotton, down 58 per cent to 119,000 tonnes, and rice, down 89 per cent to 17,600 tonnes. Livestock numbers fell in all animal categories, with sheep and lamb numbers dropping to their lowest level since 1920 at 76.9 million, while pig numbers fell to their lowest since 1982 at 2.4 million. The number of cattle used for meat production fell slightly to 24.8 million head while cattle used for milk production dropped to 2.5 million, a fall of 4.7 per cent. Many major vegetable commodities were down, but some improvements to growing conditions meant onions, peas and carrots saw increased yields during 2007/08, up three per cent, 15 per cent and 0.4 per cent respectively. Fruit production was also down due to a range of factors, including the drought, lack of irrigation water and unseasonal weather including rain during harvesting. ============================================================================ 22/05/09 – World-Grain.com EXTRA ATLANTIC TONNAGE HELPS TO ARREST SPOT RATE SURGE Supramax and handymax bulk carriers ballasting to areas where better deals can be made on the spot market have halted rate advances, writes Michelle Wiese Bockmann. The influx of tonnage from the Pacific region to the better-performing Atlantic trading basin was expected to cap owners' surging earnings on key routes, now at their highest levels for 10 weeks. The trend follows strong gains across most sizes of bulk carriers for the last two weeks, on the back of strong Chinese commodities imports. Rates for coal and iron ore shipments within the Pacific region, with voyages centred on ports in Australia, Indonesia, India and China, were half those rates secured by ships loading cargoes from the Atlantic region.

As a result, owners based in Asia had accepted lower rates from charterers to ballast to the US Gulf to take cargoes from there, in order to reposition into a higher paying trading basin. Many had yet to arrive, a London broker said. "They will make a dent but don't seem to be coming thick and fast enough to have a hold on things at the moment," he said. "Maybe in a couple of weeks when they will arrive, that will put a dampener [sic] on rates." There were also vessels shipping coal on routes from India to China that had left the area because the monsoon season was coming. They were now turning up in the south Atlantic seeking work. Brokers reported this had kept rates in check for owners seeking business to transport grain from the River Plate in Argentina, as well as at ports on the south coast of Brazil. "The south Atlantic has been considerably less active than of late. Many charterers are hoping the Indian ballasters making their way through will push the market down before it comes to crunch time," said ICAP Shipping's daily report. Rates were highest to charter supramax bulk carriers from the US Gulf to Asia and were in the "high 30s", or above $36,000 per day, a broker said. Rates to transport US Gulf cargoes to northern Europe were $32,000-$33,000 per day. A shortage of ships available to load cargoes from the north Atlantic from the end of May to early June was also pushing up rates for those charterers who needed ships for those specific dates. Rates in the Pacific have been boosted, especially by coal and iron ore business from India, to exceed $15,000 daily. These improving conditions have tempted owners to agree longer-term charters, with period business this week including two one-year deals for Chinese shipping giant Cosco's dry bulk subsidiary Cosbulk. Cosbulk chartered the 52,376 dwt, 2002-built Ince Inebolu for 12 months for $17,000 and the 57,093 dwt, 2005-built Jia Yong Shan for $14,250 per day. London-based hedge fund M2M's operations arm, Global Maritime Investments, has chartered the 53,694 dwt, 2006-built Lanshan for 12 months at $13,250 per day. Norden took a 2003-built supramax for 12 months at $13,500 per day. ============================================================================ 21/05/09 – wiadomosci.onet.pl RUSSIA SEEKS MORE ASIA GRAIN EXPORTS, BLACK SEA LINKS Russia plans to increase grain shipments to the Asia-Pacific region by developing export ports in the far east and called on Thursday for greater co-operation between ex-Soviet grain suppliers in the Black Sea region. First Deputy Prime Minister Viktor Zubkov, Russia's senior agriculture official, also said the creation of an international grain reserve could be a way to fight hunger and tackle global food security issues. "Last year, 963 million people were starving in the world, which is nearly 15 percent of the planet's population," Zubkov told a news briefing. Russia, the world's fifth-largest grain grower, will discuss these and other issues when it hosts the inaugural World Grain Forum in June, an event backed by President Dmitry Medvedev to push Moscow to the forefront of the global food debate.

The forum will take place on June 6-7 in Russia's second city of St Petersburg. Russia has invited agriculture ministers from 65 countries. "We see a substantial increase in exports of grain to the countries of Asia and the Pacific as one of our strategic tasks," Zubkov said. "The Asia-Pacific region is a growing market. Its population is rising and we believe there will be constant demand for (grain) products." Zubkov said Russia planned to build modern grain export terminals at its far eastern ports to allow for the shipment of grain from Siberia, where much of its high-quality milling wheat is grown. He gave no deadlines for the projects. BETTER BLACK SEA CO-OPERATION Russia aims to export an all-time record of about 20 million tonnes of grain in the current season to June 30. Most of these exports move through Black Sea and Azov Sea ports to North Africa and the Middle East. Zubkov said Russia had no immediate plans to create an international body to regulate grain markets, an idea that had been floated by former Agriculture Minister Alexei Gordeyev, but he said more co-operation was needed in the Black Sea region. "We are not setting a target of creating a pool of grain-producing states, although a reason for such an association may one day emerge," he said. "But at one of the business forums (in St Petersburg) we plan to discuss the possibility of creating a pool of Black Sea exporting countries. A logical step in this direction would be creating common infrastructure and consolidating market policy." Zubkov said he did not expect any major agreements to be reached at the forum, which President Medvedev first proposed at a Group of Eight meeting in Japan last July. [ID:nLO9664615]. But he said the creation of an international grain reserve could be one of the ideas discussed. He gave no further details. "The World Grain Forum will become a unique place for discussing all the key issues of world food security in the conditions of the financial and economic crisis," Zubkov said. Delegations from 40 countries have confirmed their attendance, as well as officials from international bodies like the United Nations Food and Agriculture Organisation, the World Bank and the European Bank for Reconstruction and Development. ============================================================================ 21/05/09 - shkonline.com CHINA TO START 2009 MINIMUM PRICE WHEAT PURCHASE PLAN MAY 21 China will start its 2009 wheat purchase program from May 21, under which the government will buy the new crop from the market at a minimum price if local rates fall below those levels, said the country's economic planner Thursday. The minimum prices were set at CNY1,740 a metric ton for white wheat and CNY1,660/ton for red wheat and mixed wheat, the National Development and Reform Commission said in a statement published on its Web site, reiterating the price levels first announced by it late last year.

The prices are 13%-15.3% higher than the minimum purchase price set for last year. The program will last until Sept. 30, and the purchases will take place in six major producing provinces. China's winter wheat harvest starts from late May, and the Ministry of Agriculture said wheat output this year is likely to be the same, or slightly higher, than a year ago. ============================================================================ 19/05/09 – AllAfrica.com EGYPT TO START WHEAT FARMS IN NORTHERN UGANDA The Egyptian Ministry of Agriculture and Land Reclamation is planning to set up model farms in Uganda. So far, one site of 200 hectares suitable for wheat growing has already been identified at Labora, Koro subcounty in Gulu district. "The farm will be used for research and production to demonstrate and train extension workers and farmers in wheat growing. It will be a joint farm between Uganda and Egypt," Dr. Attia El Gayar, an international expert at the Soil, Water and Environment Research Institute, said in an interview in Cairo recently. The site in Labora was identified in November last year after a technical team from Egypt and Uganda carried out a feasibility study on large-scale wheat production in Uganda. During the study the team assessed the suitability of wheat production and export. Dr. Attia said the team also visited Masindi in western Uganda and Kapchorwa in the east. At Masindi, suitable sites for wheat growing were identified at Kihonda and Kinumi, while another was found at Kaptokwai in Kapchorwa. In Gulu, studies were also done at Patiko. "At the end of the study, Labora was found most suitable," Attia said. The Egyptians will provide technical and financial assistance, send experts and provide seeds to the farm. Uganda will provide the required infrastructure, irrigation equipment, local staff and labourers. For the last two years, there has been a decline in the global wheat production that has triggered a steady rise in the prices of wheat and its products such as bread. In Kenya, for instance, reports show that the decline in output led to a rise in prices. a 90kg bag of wheat rose from sh1,800 to sh3,000. The Food and Agriculture Organisation also reported that by end of January 2008, the global prices of wheat were 83% higher compared to the previous year. In Uganda, the demand for wheat flour has been increasing with the growth of the bakery industries. Uganda imports more than 90% of the wheat consumed, according to Okaasai Opolot, the commissioner for crop production and marketing in the agriculture ministry. Wheat is grown on a very small scale in Kapchorwa and Kabale districts only. Opolot said nucleus farms of between 10 and 30 hectares would be set up in various areas, once the partnership between the two governments is formalised, to popularise the growing of the crop. The nucleus farms will be used as testing grounds for wheat varieties as well as marketing centres for the cereal, said Opolot. Local farmers would be employed on the nucleus farms as outgrowers, where they will also receive training in better wheat farming practices. "We are studying areas where weather conditions can favour wheat growth. We want to produce enough wheat for home consumption and export," Opolot explained. Meanwhile, another model farm for crop cultivation and animal production will be set up in Yumbe district. The site was selected after a team of experts visited the area in 2005. Engineer Mohamed Abd El Aziz Mandour, the general director for Africa Cooperation, said a proposed agreement had been sent to the

Uganda Government for consideration. He said work on the farm would begin after the signing of the agreement later this year. He said similar farms set up by Egypt in Zambia for maize growing and animal production, in Niger for rice and Zanzibar for vegetables, have been successful. Uganda is also benefiting from training programmes offered by the Egyptian International Centre for Agriculture in Cairo. ============================================================================ 18/05/09 – World-Grain.com RUSSIA BROKE THE ABSOLUTE RECORD OF GRAIN EXPORT VOLUMES From the beginning of the current agricultural year (from July 1, 2008) Russia shipped abroad over 17 mln tons of grains, and broke the historic record of grain exports, declared Arcadiy Zlochevskiy, the president of Russian grain union, on May 12. According to him, the export volumes will exceed the level of 20 mln tons till July 1, and even reach the level of 21 mln tons. The previous record rate totaled 16 mln tons, and was broken in 2002/03 agricultural year. Last agricultural year (July 1, 2007, - June 30, 2008), the exports totaled 13.6 mln tons. The reached export indices have already exceeded the reference points of the governmental program "Development of agriculture for the period of 2008-2012" and the program-2020. Thus, the crisis, which affected several industries and broke the plans of many economies, could not damage grain exports. According to A.Zlochevskiy, Egypt, Saudi Arabia, Tunisia, Morocco and other countries (nearly 60) became the main importer of Russian grains. To date, Russia takes the fourth place among the world exporters of grains after the USA, the European Union and Canada. The country plans to take the second place in the nearest future. In the current year, Russia launched grain supplies to such untraditional market as Japan. Also, the country takes negotiations about supplies of Russian grains with Brazil. Russian grain will be able to replace Argentine grains on Brazilian market. ============================================================================ 18/05/09 – thenews.com.pk INDIA, PAKISTAN CLOSER TO WHEAT EXPORT AFTER YEARS India and Pakistan moved closer on Monday to export wheat and wheat products for the first time in several years after bumper harvests left them with surpluses. While India is near to exporting two million tons of wheat and wheat products, Pakistan is expected to ease curbs on wheat product exports on Tuesday, taking a step closer towards allowing sales of the grain. The export of around 2.5 million tons from the two nations, paltry in global trade of around 120 million tons, could present competition to the Black Sea wheat in the Asian and the African markets. Rising global wheat stocks have pressured the benchmark Chicago Board of Trade wheat this year, even though the market has found some strength in recent weeks on delay in US spring wheat plantings. India will shortly allow exports of 2 million tons of wheat and wheat products, but it will not subsidise shipments, Trade Secretary GK Pillai told Reuters. “Exports will be allowed through select ports. This has been done to monitor how much wheat is being exported,” he said, adding a formal government order would be issued shortly. Indian traders said they were ready to immediately start exporting to neighbouring countries such as Bangladesh and Nepal but

sales to other destinations needed government subsidy.Wheat from India’s eastern state of Bihar, where government agencies have not bought wheat, can be supplied to Bangladesh even at current international prices. “Wheat exports to Bangladesh and Nepal are viable,” said one Mumbai-based trader. “Wheat sourced from Bihar can be delivered to these two countries at $230 per tonne.” India, which sets the price of wheat it buys from farmers, announced a minimum support price for wheat of Rs1,080 per 100 kg, or $225 per ton, to ensure adequate returns for farmers. Black Sea wheat is quoted around $230-235 a ton, including cost and freight to Southeast Asia. Traders said exports to other regions were not viable without government subsidy. “Theoretically, allowing exports without subsidy is fine, but practically it may not happen without government subsidy as international prices of wheat and wheat products are lower,” said Vinod Kapoor, former head of Wheat Products Promotion Society. In neighbouring Pakistan, the country’s economic panel is expected to meet on Tuesday and allow sale of wheat products after the procurement this year reached eight million tons, the highest in seven years. “The economic coordination committee meeting will take place tomorrow,” said Shahid Raja, additional secretary in Pakistan’s food and agriculture ministry. “We are pretty sure it will be allowed tomorrow, they will revoke the ban on wheat product exports.” He said Pakistan is likely to sell up to 500,000 tons of wheat products to Afghanistan and the Middle East. Pakistan, which consumes about 22 million tons of wheat a year, is expected to harvest a bumper crop of more than 24 million tons because the area under the crop rose following favourable growing conditions. Two years of bumper harvests lifted India’s wheat stocks to 29.8 million tons on May 1, rising by twothirds from a year ago. ============================================================================ 14/05/09 – World-Grain.com WHEAT GROUPS TO SYNCHRONIZE INTRODUCTION OF BIOTECH WHEAT Organizations representing the wheat industry in the United States (U.S.), Canada and Australia announced on May 14 that they will work toward the goal of synchronized commercialization of biotech traits in the wheat crop. Noting that "none of us hold a veto over the actions of others," they agreed it was in the best interest of all three producer communities to introduce biotechnology in a coordinated fashion to minimize market disruption. The announcement came in a statement of joint principles on the issue of biotechnology in wheat, which has been a sensitive subject in some parts of the world, including major export markets in Europe and Asia. There is currently no commercial production of genetically modified wheat anywhere in the world. The statement highlighted the importance of wheat to the food supply and declining acres in all three countries due in part to competition from crops that have the advantages of biotech traits. The statement also noted the slow growth trend of wheat yields compared to other crops and the lack of public and private investment in wheat research worldwide. Noting that biotechnology is not the only answer to a host of agronomic questions facing wheat production, the groups agreed it could be a "significant component" to tackling major issues facing the industry. U.S. organizations signing onto the statement include the National Association of Wheat Growers, U.S. Wheat Associates and the North American Millers’ Association. Canadian signatories include Grain Growers of Canada, Western Canadian Wheat Growers Association and Alberta Winter Wheat Producers

Commission. Australian signatories include Grains Council of Australia, Grain Growers Association and Pastoralists and Graziers Association of Western Australia (Inc.). The full statement is available online at www.wheatworld.org/biotech and at http://www.uswheat.org/biotechnology. ============================================================================ 15/05/09 - news.tradingcharts.com ARGENTINA WILL HAVE NO WHEAT TO EXPORT IN 2010, GROWERS SAY Wheat growers and traders warned that Argentina may not be able to export the grain next year due to a steep drop in production, the local press reported on Friday. Growers say the amount of land to be sown in the upcoming 2009-2010 wheat crop will not exceed 3.5 million hectares (8.6 million acres) and that that would mean a harvest of no more than 6.3 million tons, one of the worst in the past 100 years. It is estimated that national wheat consumption in Argentina amounts to between 5.5 million and 6 million tons, and therefore “there’s doubt about whether enough will be left over to export in 2010,” said Alberto Rodriguez of the Cereal Exporters’ Center. The sector says the government’s agricultural policies are responsible for the decline in the intended planted area because they have discouraged production and export, although a severe drought has also had an impact. According to data presented Thursday at a congress organized by the Grain Brokers Federation, domestic price caps and high export taxes have contributed to losses by wheat farmers of close to $3 billion over the past two harvests. “It will be very difficult to meet internal supply (targets). If it doesn’t rain, we could be a step away from importing grain,” added Daniel Assef, of Coninagro, one of four large Argentine farm organizations that have been locked in a dispute with the government since March 2008 over grain export taxes and restrictions. According to estimates from the Buenos Aires Cereal Exchange, the amount of surface area dedicated to wheat cultivation in the 2009-2010 crop will be 18 percent less than that of the previous campaign, the lowest in the last 20 years in Argentina, which until two years ago was the world’s fourth-leading grain exporter. EFE ============================================================================ 01/05/09 – World-Grain.com WHEAT HOLDS UP WELL AS GLOBAL EXPORTING COLLAPSES frequency with which the present economic downturn is being compared to the Great Depression, it should be heartening for the global grain industry that its experience this time has been hugely better than what happened in that earlier time. Although comparable statistics are not available, it should be sufficient to note that wheat exports from the United States at the height of the Great Depression dipped below 10 million bushels in the 1935-36 crop year and that global trade in wheat, the predominant grain then moving in world commerce, suffered a similarly disastrous setback. That is in sharp contrast with this year’s record in global wheat shipments, as well as U.S. shipments that are more than 100 times the volume at the low point in the 1930s. According to the World Trade Organization (WTO), the volume of all goods and services moving in world trade in 2009 will be down by 9% from 2008, which is the sharpest reduction since World War II. Developed nations will suffer the greatest declines, with their export volume projected to drop by at least

10%. Developing nations, including some that provide principal outlets for export shipments of grains, will see export decreases of no more than 2% to 3%, the WTO forecasts. While demand for grain is not free from the impact of a global economic downturn as severe as the current period, it is obvious that the global wheat business has happily displayed the ability to do much better than the total economy. Accounting for this performance and its difference from what occurred in the 1930s is not all that simple. It is tempting, for instance, to ascribe wheat’s 7% world export increase this season to its role as an essential food, but the same condition ruled in the Depression. It is apparent that the nations that are major importers of wheat have mustered the resources to safeguard their domestic food supply. The choice often has been between buying wheat or maize. The latter has lost out, as reflected in the drop of 21% in global maize trade to a four-year low. Domestic crop variations and an expanding global supply of distillers dried grains account as much for what is happening to maize as does caution attributed to slowing economies. Understanding the dynamics facing the grain trade in this period is important because of the way grain is performing so differently from exports in general. The latter is falling farther than overall business. This is explained by several factors, including the broad geographic spread of the economic setback, the way newly evolving global supply chains have accelerated trade decreases, and the shortage of trade finance capacity that has delayed or halted numerous transactions. Many governmental steps designed to address the business downturn have affected trade finance availability. These work in concert with steps to restore credit for business. Here, the WTO has even sought to play a role as an "honest broker," working to ease the availability of trade finance in the same way governments seek to loosen credit. The one generally cited horror of the Great Depression that looms over the current unsettled business situation as well as trade in grain is rising protectionism. Viewed as a genuine threat to economic recovery, the risk of aggravated protectionism is very real. In the case of grain, interference with trade first appeared more than a year ago when countries were seeking to hold down domestic prices by limiting exports. Now that prices have fallen back, the real concern has to be that steps taken by numerous countries aimed at protecting domestic industries could spread to grains and agriculture. Nothing is more counter to domestic and global well-being. It also must be viewed as a real threat that would change what has been a relatively unscathed grain trade into a battered victim. ============================================================================ UPCOMING EVENTS: ============================================================================ INTERNATIONAL GRAINS COUNCIL: GRAINS CONFERENCE 2009: THE GLOBAL ECONOMIC CRISIS – WHAT IMPACT ON GRAINS AND OILSEEDS; LONDON, 9 JUNE, 2009 The 2009 IGC Grains Conference will be held in London on Tuesday 9 June. Preparations are underway for a full and informative programme with leading speakers offering valuable new perspectives on current grain and oilseed issues. There will be a welcome reception on Monday 8 June and plenty of other networking opportunities. The Conference will coincide with the 60th anniversary of the IGC, whose activities have expanded over the years to cover all grains, including rice, and oilseeds. For more information: https://www.igc.org.uk/en/conference/confhome.aspx ============================================================================ WORLD GRAIN FORUM: ST. PETERSBURG 5-7 JUNE, 2009 According to the Order of Russian President the Forum will take place on 6-7 of June, 2009 in Saint Petersburg. It will be held within the framework of the International Economic Forum. According to the mentioned above Order, V.Zubkov will be at the head of the World Grain Forum Committee on the preparation and holding. The committee members have approved of the Forum holding program. The questions about grain market forming and food provision of population in the conditions of new risks appearing are expected to be

discussed at the plenary meeting. Global financial economic crisis, instability of grain production and other agricultural products, unwarranted growth of protectionism scales – all these questions are also included into the agenda of the Forum. These topics will be discussed in detail within the framework of four conferences and two business-forums. More than 1500 participants from more than 80 countries are expected to take part in this event. For more information: http://www.grain-forum.com/english/ ============================================================================ WEB RESOURCES: ============================================================================ May 2009 – FAO/OECD DOCUMENTS FROM: INVESTING IN FOOD SECURITY IN A GLOBAL ECONOMY - OECD/FAO HIGH LEVEL MEETING 5-6 MAY 09 The number of malnourished people around the world is estimated to have risen to nearly one billion this year as the food, fuel, financial and economic crisis takes their toll on developing countries. How to ensure food security for the world’s poor, as part of a broader concern with feeding the world (9 billion people) in 2050, was the subject of a high-level meeting organised jointly by the OECD (DCD and TAD) and the UN’s Food and Agriculture Organisation (FAO) on 5 and 6 May 2009 at the OECD Conference Centre in Paris. Documents: http://www.oecd.org/document/43/0,3343,en_2649_34621_42784171_1_1_1_1,00.html ============================================================================ May 2009 – Famine Early Warnings Systems Network (FEWS) NEW MARKET AND TRADE SECTIONS OF THE FEWS NET WEBSITE We are pleased to inform you that new Market and Trade pages have been launched on the FEWS NET website, with global, regional and country market and trade pages. Some of the key features include: 1.

Commodity Production and Flow Maps for each country and region. Maps creation is on-going and will cover all commodities considered critical to food security in each country or region.

2.

Commodity Price Bulletins that provide regular monthly coverage of prices, trends and anomalies for key food security commodities for each country and region.

3.

Trade bulletins that include the RATIN and Informal Cross Border Food Trade in Southern Africa Bulletins. We hope to add an East Africa bulletin in the coming months.

4.

Price Watch and Price Watch Annex which have been posted an archived separately for user convenience

5.

Market and trade guidance that includes guidance on market concepts and methods tailored for food security analysts in the field. There is a link to the market assessment distance learning module that FEWS NET designed for FAO’s food security series. All are available in multiple languages.

6.

Special studies include all of our market reviews and one-off studies.

7.

Market and trade core message which will highlight messages extracted from the Food Security Updates that relate to markets and trade. We are finalizing the process of how we extract and post them

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