Book excerpt: World market prices for major food commodities such as grains and vegetable oils have risen sharply to historic highs of more than 60% above levels just 2 years ago. Many factors have contributed to the runup in food commodity prices. Some factors reflect trends of slower growth in production and more rapid growth in demand that have contributed to a tightening of world balances of grains and oilseeds over the last decade. Other factors include increased global demand for biofuels feedstocks and adverse weather conditions in 2006 and 2007 in some major grain- and oilseed-producing areas. This report discusses these and other factors and illustrates how they have contributed to food commodity price increases. Tables and graphs.