Food Inflation

We should be watching this - - from the July 12, 2012 Financial Times by Emiko Terazono and Javier Blas - - US drought risks food inflation:

The US Department of Agriculture yesterday slashed its forecast for the corn crop by the most since the 1988 drought.  It cut the 2012-13 production estimate 12 per cent and its seasoned inventory estimate a hefty 37 per cent.  Richard Feltes, vice president at broker RJ O'Brien in Chicago, said the lower crop "ups the risks of reintroducing food inflation as an issue affecting global recovery."