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Due to the worst drought in the U.S. since 1956 and unfavorable weather conditions in the Black Sea region, world grain prices jumped in July. International Grain Counsil announced that its Grains and Oilseeds Index reached all-time high on July, 20th. If the situation around world grain supply continue deteriorate, people in poor and developing countries can suffer from increasing food prices as food expenditures in many low income countries exceeds 30% and even 40% of final consumption expenditures.

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