Food Supply Adequate to Forestall Unrest, World Bank Says

Further weather disruptions or rising energy expenses could increase grain costs already at a record, while current supplies may be ample enough to forestall unrest caused by high food prices, the World Bank said.

The worst U.S. drought since the 1950s sparked a 10 percent gain in the World Bank’s Food Price Index in July, the organization said today in a monthly report. Corn and soybean prices last month exceeded records in 2008, when food riots erupted in African and Middle Eastern countries. While drought in the former Soviet Union and weak monsoon rains in India are contributing to crop concerns, stable rice prices argue against a crisis situation, the bank said. That could change should energy costs increase or bad weather persist.