Corn prices pushed up by 23% in July amid fear of global food shortage
Drought in the US has led the US Department of Agriculture (USDA) to drastically reduce its forecasts for corn production and predict a sharp increase in prices.
The US is the world’s biggest producer of corn, soybeans and wheat, but a prolonged heatwave has destroyed much of this year’s crop.
As a result the USDA has predicted corn prices will now average $7.50-$8.90 per bushel. In July it predicted this figure would be $5.40-$6.40.
The worst drought in 50 years threatens to have serious consequences for the overall global food supply.
Many are now calling for a change to existing US law which demands that 40% of the corn harvest must be used to make biofuel.
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