July 31, 2012 13:21
The worst U.S. drought in decades has caused wheat and corn prices to soar worldwide. This is bad news for Korea as the U.S. supplies the vast majority of its total wheat and corn demand.
As of last Thursday, corn futures stood at nearly US$8 (US$1=W1,138) a bushel on the Chicago Board of Trade, up over 17 percent compared to the year before. Wheat futures spiked by over 30 percent to almost $9 a bushel in the same period.
The Ministry for Food, Agriculture, Forestry and Fisheries warns that this year's upsurge in food prices may be similar to that of 2008, but the impact could be even bigger this time.
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