Chicago Board of Trade wheat futures surged more than 3 percent on Monday and closed at its highest level in three years on concerns about global grain stocks amid shrinking harvest prospects in Europe, the Black Sea region, Australia and Canada.
CBOT September soft red winter wheat settled 18-1/4 cents higher at $5.74-1/2 per bushel. It was the highest closing price for a front-month contract since July 2015. K.C. September hard red winter wheat futures ended up 18-3/4 cents at $5.86 a bushel while MGEX September spring wheat rose 15-1/2 cents to end at $6.28-1/4.
Searing heat has devastated wheat fields across northern Europe while a combination of dry conditions and extreme rain in the Black Sea has hit output estimates, with prices soaring on fears of further crop damage. The US Department of Agriculture is expected to lower its spring wheat crop condition rating by 1 point in a weekly report due later on Monday.
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