SOYABEAN prices rose past $15 a bushel at the end of April, the highest since a mid-2008 spike in futures to $16.63. Concerns over supply shortages, due to dry weather conditions in South America (Brazil and Argentina together account for 46% of global soyabean production), have contributed to the surge. Prices are up a quarter since the beginning of the year. The International Grains Council, a trade body, have repeatedly revised down their forecast for world production, which is expected to decline by 11% from last year's record. Strong demand from China is also goosing markets.

The vast majority of soyabeans are crushed and used for animal feed (soyabean meal) and cooking oil. Soyabean meal prices have increased by 40% since January, which has led to a rise in the price of meat. Corn prices have also risen—again partly thanks to demand from China, whose imports in the first quarter of this year almost equalled that for the whole of 2011. America recently recorded its biggest one-day corn sale since 1991: 1.56m tonnes, including 120,000 tonnes to China. The prices of wheat, rice and other staples are also rising, and analysts warn that higher prices could persist.