Surge in prices paid for US corn

American farmers have been delighted to see a surge in prices being paid for corn and soyabean futures, which rose sharply this week following months of sluggishness in the market.

However, US traders warn that the soybean rally could be shortlived. They cited a sharp jump in the premium of near-term contracts over those for later delivery, according to the press agency Reuters.

The traders say the unexpected surge in US corn prices this week was due to a host of factors, including an influx of money from commodity funds and exporters looking for alternatives to South American supplies that may not be available.

The July soybean contract reached the highest level for a most-active contract since last summer, in record volume at Chicago Board of Trade and topped $10 a bushel, a price target farmers have been lusting after for months.

July corn touched the highest level for a most-active contract since August, topping a sought-after target of $4 a bushel.