Bread, milk and corn prices in New Zealand could rise if the worst US drought in 50 years rages on.
July saw the hottest temperatures in American history, worsening corn and soy growing conditions across the midwest.
The lack of rainfall and high temperatures led to US prices for the grains soaring.
And although New Zealand is on the other side of the world, Nigel Brunel from OM Financial told TV ONE's Breakfast the high prices could hit New Zealand.
"We really haven't seen grain prices in the US go like this...grain prices for corn and wheat have effectively doubled in the last few months on the back of the worst drought they've seen in over 50 years," he said.
"In all our years of trading grain and commodities at OMF, we haven't seen prices run as dramatically as this."
According to Brunel, the price of corn can directly affect how much milk costs because in the US most cows are barn-fed.
"A lot of corn goes into feed for animals in the US. We don't have that here in New Zealand - we're basically free range cows, but given milk is a global commodity, naturally if US prices rise off higher input, then we'd expect to see higher price rises here to a similar amount."
Brunel said he expects New Zealand prices for milk to reflect international prices.