Corn prices have risen to new highs as the US Department of Agriculture predicts that supplies will fall because of poor weather.

Corn hit the record price of $6.672 a bushel this week on the Chicago Board of Trade after the forecast, as crops have been hit hard by flooding and wet weather in the US.

Also adding to the problem, demand for corn for use in both food and fuel has been steadily increasing worldwide, and as demand for corn to feed animals and make biofuels increases it is likely to push up prices further.

As oil prices are continuing to set record highs, the use of corn in biofuels as an alternative is becoming more attractive and is the main reason why the price of corn has gone up to $6.672 a bushel from $4 a bushel a year ago.