August 9th, 2012
10:00 AM ET
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The drought that's drying up the Heartland isn't just an American problem. It's causing food prices to surge worldwide.

Food prices jumped 6% in July, after three months of declines, according to the United Nations' monthly Food Price Index released Thursday. The main drivers behind the increase? Grain prices. And more specifically, corn prices, which have hit record highs in recent weeks.

Food is a major U.S. export, so the drought affects prices around the globe.

According to the U.N. report, global corn prices surged nearly 23% in July, exacerbated by "the severe deterioration of maize crop prospects in the United States, following drought conditions and excessive heat during critical stages of the crop development."

"I think it's going to have a big impact [on consumers,]" said Sam Zippin, analyst at Sageworks, a financial information company.

"Corn is in almost everything."

Read - U.S. drought drives up food prices worldwide


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Filed under: Business and Farming News • Disaster • Drought • Environment • Farms • Heat • News

soundoff (8 Responses)
  1. applpy

    @Been there, there is no reason why corn has to be the central force of our lives. We need to cultivate a varied diet, eat less processed food and try to preserve biodiversity instead of cultivating and eating only one thing, be it corn or tree nuts :)

    August 11, 2012 at 1:42 pm |
  2. applpy

    time to rethink dependence on corn....perhaps try to minimize processed foods which all contain some form of corn

    August 9, 2012 at 12:17 pm |
    • Raver Longenhardenn

      There's nothing wrong with dependence on po .... oh. You said "corn."

      August 9, 2012 at 12:24 pm |
    • Been There

      Typical response from people who have no idea the role corn plays in our daily's more than just food. Same type of people who say "We must reduce our dependency on _____________." So what should be be dependent on? Tree nuts? Tofu? Guess what...if that's all everyone eats, the same "problem" will develop and then people will say we are too dependent on those things.

      August 9, 2012 at 1:55 pm |
  3. MommaBear

    I think we all need some rain. Unbelievable summer so far!

    August 9, 2012 at 10:48 am |
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