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Global Food Prices Face Upward Pressure on Crude Oil Rally

  • Production of biofuels from sugar, palm oil and corn may rise
  • Higher petroleum prices also boost cost of producing food
Updated on

Near-record food costs risk climbing further as surging oil prices boost the appeal of turning more agricultural commodities into biofuels.

Crops that can be converted into fuel are rising as crude climbed to a seven-year high on Wednesday following an explosion on a key oil pipeline running from Iraq to Turkey, and on concerns the global supply surplus is shrinking.