The three U.N. food agencies encouraged governments to take quick action to curb rising prices of corn, wheat and soybeans and avoid a repeat of the 2007-2008 food crises.

The U.S. drought has boosted commodity prices and the Food and Agriculture Organization’s (FAO) next global food price index will be out soon; its last report indicated that global prices rose 6% in July after three months of decline, in part because of the U.S. drought and worsened crop prospects for Russia's wheat harvest because of dry weather.

The FAO, the U.N. World Food Program and the International Fund for Agriculture Development also recommended avoiding panic buying and refraining from imposing export restrictions when production falls, saying that while it may temporarily help consumers at home, it makes life difficult for others. In the past, Russia has imposed export bans to offset low domestic wheat production.

Source: Associated Press