Major crops like corn and soybeans are up to high price levels today from heat concerns in the Midwest, and wheat has joined the grains, as a drought in Russia has pushed wheat prices to their highest levels in 7 months.
According to the Grain Producers' Union in Russia, the grain harvest will drop by a minimum of 20 percent from 2009, to 77 million metric tons.
Wheat futures have surged about 16 percent so far in July, as concerns over corn has traders believing wheat may have to be used to feed livestock, driving up the demand.
That and a declining U.S. dollar has also made the grain look good to investors.
Wheat futures for September delivery rose 29 cents, or 5.2 percent, to $5.88 a bushel at a little after 10:00 AM CDT on the Chicago Board of Trade, after going as high as $5.985, the highest price for a most-active contract since Nov. 23.
If the weather improves in the Midwest or Russia, the price of the grains will plunge quickly. It's also yet to be seen whether the actual damage from the weather will have the dramatic impact expected on all these crops, as global supply has been high for several years, especially with wheat.