Fueled in part by a Russian drought that has caused the country to cut its wheat exports, food prices have risen to their highest levels in two years. The UN Food and Agriculture Organization says that food prices have shot up 5% in July and August. Stocks remain high, however, and despite the summer slump, this year’s food production will still be the third highest on record. Food prices, though rising, remain 38% lower than their high mark in June 2008.
The FAO reduced its global rice output estimate this year to 467 million tons, from 472 million tons in June, after flooding curbed the Pakistan crop.
A lower harvest in Pakistan may reduce global exports to 29 million tons next year. Read more on: The Washington Post and Bloomberg and even DN (Swedish).