Corn sets all-time high on U.S. crop fears

Corn prices surged to a record high on Monday and looked set to climb further as widespread flooding in a key producing region, the U.S. Midwest, helped to heighten concern about tight supplies, dealers said.

"I think we are definitely going higher. There is no let up either on the demand or supply side...," said analyst Sudakshina Unnikrishnan of Barclays Capital in London.

Front month July corn on the Chicago Board of Trade rose to a contract high of $7.57-3/4 a bushel, up more than 3.5 percent from Friday's close, while July 2009 soared to an all-time peak of $8.07.

Corn prices have jumped by one quarter this month and are up 90 percent from a year ago, prompting renewed concern about food price inflation with the crop a staple for both humans and livestock in many regions of the world.

The United States is by far the world's largest producer of corn and flooding has been most devastating in the leading corn growing state, Iowa.