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Chinese drought could push up grain prices

Chinese drought could push up grain prices

Write: Ernie [2011-05-20]

The United Nations food agency fears a severe drought in China could increase world grain prices further.

China's major agricultural regions are currently facing their worst drought in 60 years.

If rain doesn't fall over the next few months, there'll be a major impact on the Chinese wheat crop.

The concern from the United Nations Food and Agriculture Organisation is that China will be forced to import more grains to meet domestic demand, putting upwards pressure on already high world food prices.