US crop losses push world food prices

Updated June 18, 2008 08:09:20

Floods and torrential rains have caused home and crop damage in the US Midwest. [Reuters]

World food prices are expected to remain at high levels because of crop losses caused by flooding in the America's mid-Western states.

Our Washington correspondent, Michael Rowland, reports that the floods have devastated at least 10 per cent of the corn crop in the US state of Iowa.

It's had an equally devastating effect on this year's soybean harvest.

Corn and soybean are used in processed food and are fed to the cattle that produce America's meat.

The reduction in grain output is likely to force food prices even higher at a time when many countries around the world are already struggling with the rising cost of basic foods.

World corn prices have risen to record highs and are 90 per cent higher than they were a year ago.