Corn prices pushed up by 23% in July amid fear of global food shortage

US government slashes estimates for global food supply

Drought in the US has led the US Department of Agriculture (USDA) to drastically reduce its forecasts for corn production and predict a sharp increase in prices.

The US is the world’s biggest producer of corn, soybeans and wheat, but a prolonged heatwave has destroyed much of this year’s crop.

As a result the USDA has predicted corn prices will now average $7.50-$8.90 per bushel. In July it predicted this figure would be $5.40-$6.40.

The worst drought in 50 years threatens to have serious consequences for the overall global food supply.

Many are now calling for a change to existing US law which demands that 40% of the corn harvest must be used to make biofuel.