Wheat posted the biggest weekly gain in 19 months amid concern that freezing weather damaged winter crops in the U.S., the world’s top exporter, while turmoil in Ukraine may delay shipments. Soybeans climbed, and corn dropped.
Winter-wheat crops and corn prospects in Ukraine face mounting risk from an intensifying drought in central and eastern areas amid political tensions with Russia, according to Martell Crop Projections.
Wheat prices, which last month posted the biggest gain since 2012, will extend the rally as drought and cold weather damaged U.S. winter crops across the Great Plains and Midwest, according to researcher AgResource Co.
Wheat futures fell from a two-month high on speculation that export sales will ease from the U.S., the world’s top shipper. Oats dropped from a record, while soybeans rose to the highest since September.
U.S. planting of eight major crops will decline 0.7 percent in 2014 to the fewest acres since 2010, and prices of corn, soybeans and wheat cotton will fall for the second straight year, the government said.
The same weather pattern that helped to cause drought in California and South America this year may migrate east into the central U.S. during the Northern Hemisphere’s summer, a climate forecaster said.