Drought drives global food prices higher
by Eric Schroeder
WASHINGTON — Global food prices increased 10% in July from a month ago, as maize and wheat prices each rose 25% and soybeans advanced 17%, according to the World Bank Group’s latest “Food Price Watch” report. The price of rice, meanwhile, fell 4% between June and July.
The World Bank’s Food Price Index, which measures the price of internationally traded food commodities, was up 6% from July 2011, and up 1% from the previous high set in February 2011. The report noted weather as the “critical” factor behind the abrupt global price increases in July, with drought in the United States resulting in vast damages to maize and soybean crops.