Grain Prices Skyrocketing Now -- Higher Food Prices to Follow

The price of that loaf of bread or pound of pork chops could be on its way up, as grain prices in the U.S. continue to climb sharply. What's to blame for higher food prices? A shortfall in supply and burgeoning demand, according to a new USDA study.

Weather has played a big part in contracting the world grain supply. Thanks to flooding in early summer and dry weather later in the U.S. grain belt, the nation's 2010 corn yield was down 5% from its all-time high in 2009. Soybeans were down 1% and wheat declined slightly as well. All three yields fell far short of the government's earlier projections.