Investing.com - U.S. grain futures rose on Monday, with wheat prices climbing to a four-week high as renewed concerns over a disruption to supplies from Russia and Ukraine lifted prices.
On the Chicago Mercantile Exchange, U.S. wheat for July delivery rose to a session high of $7.1688 a bushel, the most since March 24. Wheat last traded at $7.1100 a bushel during U.S. morning hours, up 0.34%, or 2.4 cents.
The July wheat contract rallied 1.69%, or 11.6 cents, on Friday to settle at $7.0820 a bushel.
Investors continued to monitor events in Ukraine, as hostilities between Kiev and Russia escalated over the weekend, while the West prepared to impose fresh sanctions against Russia.
The U.S. and European Union are expected to step up sanctions against Moscow as early as Monday after pro-Russian rebels in east Ukraine took eight European military inspectors hostage.
The U.S. Department of Agriculture projected that Russia and Ukraine will produce a combined 74 million tonnes of wheat in the 2013-14 marketing season and export a total of 26.5 million tonnes of the grain, representing 17% of world trade.
A disruption to supplies from the region could mean increased demand for U.S. grains.
Meanwhile, market players continued to monitor weather and crop conditions in the U.S. Great Plains region.
The International Grains Council lowered its global wheat production forecast for the 2014-15 marketing year last week to 697 million tonnes, citing "less than ideal crop conditions" for winter wheat in the U.S.
Elsewhere on the CBOT, U.S. corn for July delivery rose 0.74%, or 3.77 cents, to trade at $5.1638 a bushel, the most since April 9. Corn jumped 1.08%, or 5.4 cents, on Friday to settle at $5.1260 a bushel.
The USDA expects Ukraine to be the third-largest shipper of corn in the current marketing year.
Corn received additional support as cold and wet conditions in the U.S. Midwest delaying planting of the new crop.
Meanwhile, U.S. soybeans for July delivery picked up 1.01%, or 15.05 cents to trade at $15.0925 a bushel, the highest since April 21.
The July soybean contract surged 1.65%, or 24.2 cents, on Friday to settle at $14.9420 a bushel amid concerns over tightening U.S. supplies.
Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.