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As poor weather continues to hammer crops in the US, all eyes are on the impact the drought will have on global food prices. It is important for policymakers to look at all the information surrounding food prices, including price volatility. IFPRI's Excessive Food Price Variability Early Warning System provides reliable daily monitoring of food prices and price volatility, based on sophisticated statistical modeling (NEXQ: Nonparametric Extreme Quantile Model).

The USDA has released the latest World Agricultural Supply and Demand Estimate. This report provides comprehensive forecasts of supply and demand for major U.S. and global crops and livestock.

The latest FAO Food Price Index was released today, citing an increase of 12 points from June. While the Index averaged 213 points in July, it remains well below the peak levels reached in February 2011.

FEWS NET has released its latest Monthly Price Watch , citing continuing rising prices for many staple commodities. US maize prices rose by 20% in July due to the ongoing drought in the Midwest; drop losses in both the US and South America have contributed to increased prices for soybeans and soybean oil as well. International wheat prices also increased in June and July due to expected shortfalls in the European Union, Russia, and Kazakhstan.

Global soybean prices hit an all-time high on Monday in the wake of continuing hot, dry weather across the US Midwest. In addition to pushing prices higher, the drought and subsequent declining soybean stocks and lower expected exports are also causing a period of excessive price volatility in the commodity. It is the first time such a period has been seen for soybeans since December 2010.