Bloomberg Wheat Jumps Most in Five Months; Russia, Ukraine Output May Ebb

May 1 (Bloomberg) -- Wheat jumped the most in five months on speculation that dry weather will curb yields from crops in Russia and Ukraine, where farmers plan to start harvesting next month.

The dry spell may hurt winter wheat and some developing spring crops, such as corn and sunflowers, DTN Meteorlogix LLC said today in a report. Rain expected next week will help ease the stress on crops, the forecaster said. Wheat futures jumped 6.2 percent, the biggest gain among 19 raw materials in the Reuters/Jefferies CRB Index.

“I’ve heard talk about dry, cold weather in Russia and Ukraine, which isn’t a real great combination,” said Tomm Pfitzenmaier, a partner at Summit Commodity Brokerage in Des Moines, Iowa.

Wheat futures for July delivery rose 33.5 cents to $5.70 a bushel on the Chicago Board of Trade. The percentage gain was the biggest for a most-active contract since Nov. 24. Earlier today, the price reached $5.74, the highest since Feb. 9.

Futures still are down 6.7 percent this year, partly on declining demand for U.S. grain.

The CRB headed for its biggest daily gain in almost a month on signs that the global economy may rebound. Grains and energy led the raw-material rally.

Wheat is the fourth-biggest U.S. crop, valued at $16.6 billion in 2008, behind corn, soybeans and hay, government data show.

To contact the reporter on this story: Tony C. Dreibus in Chicago at Tdreibus@bloomberg.net.