The FAO Food Price Index climbed 6 percent in July 2012 after three months of decline. The Index averaged 213 points, up 12 points from June but well below the peak of 238 points reached in February 2011. Grains and sugar were the main drivers of the increase.
The severe deterioration of US maize crop prospects due to extensive drought damage pushed up maize prices by almost 23 percent in July.
International wheat prices also surged 19 percent amid worsened production prospects in Russia and expectations of firm demand for wheat as feed because of tight maize supplies.
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