Food price fears as US warns on crop yields

Demand is soaring and crop yields are shrinking. This alone will send agricultural prices higher. Now, add aggressive currency devaluation into the mix to better understand the direction of capital flows. The phrase "bring the pain" will soon redefine the grocery checkout experience.

"The combined production shortfalls and dramatic potential stock drawdowns mean a much tighter supply picture than just a few months ago," the agency said in a separate grains report.

Benchmark Chicago corn futures soared above $6 a bushel for the first time since August 2008, before ending lower. Soyabeans rose 4.3 per cent and New York cotton futures posted a record above $1.51 a pound. The price rises have revived fears of a repeat of the global food crisis of 2007-08.

Source: edition.cnn.com