Corn price hits record high Corn and soyabean prices surged to fresh record highs on Thursday as concerns heightened over a shortage of crops amid the worst US drought in half a century. The sharp increase in grains prices comes as a devastating drought has downgraded prospects for corn and other grains as well as soyabeans in the US. Benchmark corn futures surpassed $8 a bushel for the first time, hitting a record $8.055, while benchmark soyabeans also hit a fresh peak at $17.115. The prices of the two staple crops have surpassed the peaks of the 2007-08 food crisis, although other staples such as wheat and rice remain lower. Grains traders have been on high alert as US government data have pointed to sharply lower harvests. Meteorologists also this week confirmed the worst drought in US for half a century. The US National Oceanic and Atmospheric Administration said the drought gripping the country was the worst since 1956 in terms of the areas suffering from moderate to extreme drought. The data came as the US government said in its weekly crop report that only 31 per cent of the corn crop was in "good to excellent" shape, down from 40 per cent a week earlier. For soyabean, the figure fell to 34 per cent to 40 per cent. Tom Vilsack, US agriculture secretary, on Wednesday said the drought would result in a significant increase in crop prices. "I get on my knees every day and I'm saying an extra prayer right now," he said. If I had a rain prayer or a rain dance I could do, I would do it. However, he rejected calls for corn to be diverted from ethanol production to alleviate the expected shortage of grains for human and animal consumption. The US Department of Agriculture highlighted the dire state of the corn crop last week, noting that "persistent and extreme" dryness and heat over the past six weeks "have substantially lowered yield prospects across most of the major growing regions." Meteorologists are forecasting higher temperatures for the central and western Midwest starting early next week, adding to the stress for late pollinating corn and pod-setting soybeans in the dry areas.