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Thursday, July 26, 2012

As U.S. Midwest drought worsens, food prices set to rise dramatically!

CHICAGO/WASHINGTON, July 25 (Reuters) - Scattered rain brought some relief to parts of the baking U.S. Midwest on Wednesday, but most of the region remained in the grips of the worst drought in half a century as the outlook for world food supplies and prices worsened.
The U.S. Agriculture Department forecast that food prices would now out-pace other consumer costs through 2013 as drought destroys crops and erodes supplies.
"The drought is really going to hit food prices next year," said USDA economist Richard Volpe, adding that pressure on food prices would start building later this year.

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