Investing.com - U.S. wheat futures surged to a 14-month high on Monday, 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 rallied to a session high of $7.4000 a bushel, the most since March 28, 2013.
The July wheat contract last traded at $7.2913 a bushel during U.S. morning hours, up 1.8%, or 12.93 cents. Wheat prices rose 1.24%, or 8.6 cents on Friday to settle at $7.1600 a bushel.
Clashes between Ukraine's army and pro-Russian forces broke out in six cities in eastern Ukraine over the weekend, stoking fears that the crisis will develop and drag the U.S. deeper into the standoff.
U.S. Secretary of State John Kerry threatened Russia with further sanctions on Sunday, unless the country stopped backing separatists in eastern Ukraine.
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 looked ahead to the USDA’s weekly crop progress report due later in the day, amid growing fears over dismal wheat crop conditions in the U.S. Great Plains region.
Elsewhere on the CBOT, U.S. corn for July delivery inched up 0.08%, or 0.42 cents, to trade at $5.0063 a bushel.
The July contract lost 1.48%, or 7.4 cents on Friday to settle at $4.9940 a bushel after agricultural meteorologists predicted more favorable conditions for U.S. plantings in the coming week.
Meanwhile, U.S. soybeans for July delivery added 0.03%, or 0.42 cents to trade at $14.7063 a bushel. The July soybean contract picked up 0.67%, or 9.6 cents, on Friday to settle at $14.7060 a bushel.
Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.