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.