Midwest Droughts Varied and Far Reaching Effects

The severe drought now being felt in much of the Midwest segment of the United States is threatening to destroy a large portion of the annual corn crop (Drought, heat killing corn crop, The Columbus Dispatch -   http://tinyurl.com/84k8yvp ) At first glance, that would seem like an event that would have significant effects on food prices, and that those effects would be felt most close at hand and become more subdued the farther one travelled from the source of the event.  Evidently, that's not the case.  Here in the U.S., those commodities prices represent only a small part of the average food bill, so in the short term, those food prices should not see any big jumps.  That's according to a story in the Appleton, Wisconsin Post-Crescent - http://tinyurl.com/8yer9t9 .  And yet half a world away, The Sydney Morning Herald is reporting that the withering U.S. corn crop will drive up commodity prices enough in that country that consumers will definitely feel the pinch at the local supermarkets (US Heatwave to send Australian food prices higher - http://tinyurl.com/7jukl5r ). It's a good example of the interconnectedness of the worlds commodities markets, and how water, or the lack thereof, can have far reaching effects.