US floods hit economy, food prices

Hundreds of volunteers on the surging Mississippi River piled sandbags atop strained levees today as the worst Midwest flooding…

Hundreds of volunteers on the surging Mississippi River piled sandbags atop strained levees today as the worst Midwest flooding in 15 years delivered a blow to the US economy and world food prices.

A levee broke in Gulfport, Illinois, sending muddy waters from the most important US waterway cascading into nearby farmland and a few homes. No one was injured but authorities closed the bridge across the river to Burlington, Iowa.

Corn and soybean prices stayed near record levels as millions of acres of cropland have been lost or damaged in the world's largest grain exporter. Meat prices also soared, in line with the costs for feeding cattle, hogs and chickens.

"We've faced some pressure this year, but there could be greater pressure next year on food inflation when protein prices start to increase," said Bill Lapp, a food industry consultant and former chief economist at Conagra.

US president George Bush promised aid to the stricken region, where billions of dollars in farm and business losses in the heart of the US grain belt looked set to increase inflation pressures on prices for food, fuel and other goods.

But senator Robert Byrd, a West Virginia Democrat, said little had been done to prevent flooding and Bush had learned nothing from Hurricane Katrina and other disasters.

"President Bush has asserted that investing in America's needs is somehow 'wasteful' and his budget, which does not add one thin dime for a boost in levee funding, reflects this sentiment," Byrd said.