This Monthly Market Update (MMU) is designed to better inform decision makers and analysts in Sudan of current prices and market trends. The data sources for the 17 Northern States of Sudan are from the available data collection system of the Ministry of Agriculture and Irrigation /Ministry of Animal Resources, Range and Fisheries (MoAI/MARF). The Sudan MMU was started by the Sudan Institutional Capacity Program: Food Security Information for Action (SIFSIA), which released the first 51 issues of the MMU until the project was discontinued. FSTS & FEWS NET are continuing this effort. FAMIS (Food & Agriculture Market Information System - Sudan) collects crop, livestock, and horticultural and animal products prices from major markets of the Sudan on a weekly basis. Data collection is done according to a specific methodology to ensure the accuracy and objectivity of the published information. FAMIS is a web based – SMS platform that operates through www.farmers.sd , the main source of price data for the Monthly Market Update. SUMMARY: Cereal prices continued to be generally stable in most of the monitored markets in Sudan in June 2013. A trend that deviates from normal during the lean season (May to September). Ample sorghum supplies from last season's harvests continued to influence the markets and compelled sorghum traders to gradually liquidate their stocks in preparation for the 2013/14 season. High marketing costs due to insecurity have resulted in a 6 percent increase in sorghum prices in Nyala (South Darfour) and in Kadugli (South Kordofan). Zalengei (Central Darfour State) market recorded the highest sorghum and wheat price increases of nine and 20 percent, respectively. Sorghum prices increased slightly in June in the source market of Al Qadarif and were close to export parity price levels as prices decreased on international markets, implying a decrease in the export competitiveness of Sudanese sorghum. Millet prices were generally stable on most markets. Wheat prices continued to increase with El Fasher (North Darfour State) recording the highest increase of 14 percent while Dongola (Northern State - main wheat production area in Sudan) recorded a 5 percent decrease. The official national annual inflation rate issued by the Central Bureau of Statistics (CBS) indicates a drop in the national inflation rate from 37 percent in May to 27 percent in June. According to the CBS, this drop is mainly due to the relative stability of the Food Consumer Price Index (CPI) between June 2012 and June 2013. The terms of trade between cereals and livestock continued to be in favor of the pastoralists. This trend is likely to continue in the next months as pasture conditions improve during the course of the July-September rainy season and as cereal prices decrease gradually due to the favorable production outlook. Future cereal price trends will be determined by the progress of July-September rains. If rains are good, traders will continue to sell their old stocks causing prices to remain stable. If rains are normal to below normal sorghum prices will likely start to increase in the coming months. Figure 1: Real Wholesale Prices for Sorghum in Khartoum (June 2009 – June 2013) Figure 2: Comparison of Export Parity (XPP) and Domestic Prices for Sorghum from Al Qadarif (June 2012 – June 2013) Source: The Food & Agriculture Market Information System (www.farmers.sd) and the Central Bureau of Statistics (CBS). International prices are from USDA and International Grain Council, www.fao.org/es/esc/prices/ Seasonal Calendar and Inflation rates 2 Nominal and real wholesale prices of cereal 3 Terms of trade and sheep prices 3 Market analysis 4 CONTENT: July. 2013 Bulletin # 66 SUDAN MONTHLY MARKET UPDATE Food Security Technical Secretariat (FSTS) The Food Security Technical Secretariat was established in late 2009. Several government institutions are represented in the FSTS to ensure maximum coordination to achieve food security. FSTS supports various food security information systems and provides policy briefs as well as monitoring of the impact of applied polices on food security. FSTS also conducts analysis of the food security situation at the locality level. Famine Early Warning Systems Network (FEWS NET( Created by USAID in 1985 to help decision-makers plan for food insecurity, FEWS NET provides early warning and evidence-based reporting on more than 30 of the world’s most food-insecure countries. In partnership with international and national agencies, FEWS NET collects and analyzes data on such factors as weather, climate, agriculture production, prices, trade, and livelihoods. Reports are available at www.fews.net . (FAMIS) Famine Early Warning Systems Network Food Security Technical Secretariat – SUDAN (FEWS NET) (FSTS) شبكة أنظمة المجاعةطر ا لدرء مخا المبكرنزار منة الفنية لمان ا الغذائى- السودانFOOD SECURITY TECHNICAL SECRETARIAT