Food crisis fears mount as corn price hits record high
A drought in the US is causing corn price to soar, with fears mounting of damage to wheat crops.
By Garry White
10 Aug 2012
Fears of a potential repeat of the 2008 food crisis mounted, after a US government report showed that US crops were being savaged by an intense drought.
Corn prices hit a new record high today on confirmation that the US crop would probably slump by 13pc to a 6-year low.
The last time prices spiked 4 years ago food riots occured in Egypt, India, Indonesia, Mexico and many other countries.
The US Department of Agriculture (USDA) said that the severe drought occurring in the US meant that this year’s harvest would be 10.779bn bushels, compared with 12.358bn bushels last year.
December corn futures traded on the Chicago Board of Trade rose as high as $8.3075 a bushel, a new record, before easing back. Corn prices have surged more than 60pc since June.