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Fears of a global food crisis swept the world’s commodity markets as prices for staples such as corn, rice and wheat spiralled after the US government warned of “dramatically” lower supplies.

An especially hot summer in the US, droughts in countries including Russia and Brazil and heavy rain in Canada and Europe have hit many grain and oilseed crops this year. This has raising concern of a severe squeeze in food supplies and a repeat of the 2007-08 food crisis, The Financial Times says.

The US Department of Agriculture, in a closely watched report, predicted that the country’s stocks of corn would halve to their lowest levels in 14 years.

It warned of a “much tighter supply picture” for corn and barley, the two main feedstocks used to fatten cows, sheep, pigs and poultry.

Shares in some of the world’s biggest meat packers tumbled. US-listed Tyson Foods fell 7.7 per cent. Shares in other food producers also declined.

“I think we have a food crisis right now,” said Hussein Allidina, head of commodities research at Morgan Stanley.

In Chicago, the prices of agricultural commodities jumped so sharply that they hit limits imposed on daily movement by the city’s futures exchange, the biggest in the world.

Traders, unable to use futures contracts because of the limits on trading, bid indicative corn prices to $5.65 a bushel in the options market, a rise of 13.3 per cent on the day.

In Paris, European wheat prices rose 10 per cent, while the cost of other commodities including soyabeans, sugar, cotton, barley and oats soared.