Wheat Prices Up on Russian Drought Concerns

Wheat prices continue to rise on concerns over the Russian drought, and the weather in the Midwest which may hammer corn and soybeans to the point of causing significant supply problems.

This has to play out yet, and for now it's just concerns, but if the weather indeed continues as it is, it could cause prices to continue to rise.

Wheat has been pummeled for years because so many nations have been growing their own, and prices have remained down for some time.

Russia said the grain harvest this year will probably be 20 percent less than it was in 2009, declining to 77 million metric tons.

Wheat futures for September delivery grew 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 reaching as high as $5.985, the highest price for a most-active contract since the latter part of November 2009.