Global food prices soar due to demand shocks, impacting corn markets.
The study used a model to see how changes in supply and demand affect food and fuel prices. They found that different factors influence corn prices in the short and long term. When demand goes up, corn prices rise quickly, but over time, other factors like global markets and supply shocks help stabilize prices. In 2007-2008, spikes in food prices were mainly caused by changes in supply and demand, as well as economic factors.