, 23/12/2010 - Following the seasonal pattern, sorghum and millet prices are dropping significantly in real terms and more moderately in nominal terms. This period normally lasts through March or April. However, wheat prices have continued to increase mimicking the international wheat prices (though to a lesser extent). While wheat prices increased by about 70% in the international market between July and December, the local wheat prices increased only by 15% during the same period. Cereal prices have started to get lower than same time last year’s though still much above their previous five year’s average. Lower prices will benefit poor households, as they gain greater market access. But if prices persist to drop below their average and to the break-even point of cost of production, producers will be hurt as low prices translate into low revenues. Given current high but decreasing prices, stabilization efforts should be increased but with extra caution as it may also further exacerbate problems in Sudan’s fragile and volatile market. Prices will need to be monitored in the coming months to help decision makers take relevant balanced measures in this critical period of the year.