Wheat prices shot up Monday as investors bet that hot, dry weather expected in the U.S. Great Plains could damage crops, tightening supplies of the grain used to make bread, pasta and other foods.Other commodities traded mostly higher, with crude oil, gold, silver and most Agriculture (web|news) futures trading higher. Temperatures in Kansas, Oklahoma and other Great Plains states are expected to reach triple digits later this week, threatening to damage wheat crops just as farmers prepare to harvest.

"The hot temperatures aren't there yet but it's a worry," said Jason Ward, analyst with Northstar Commodity.

Wheat for July delivery added 21 cents to settle at $7.825 a bushel on the Chicago Board of Trade, after earlier rising as high as $7.98.



An influx of money from index funds on the first trading day of the month also helped prop up wheat prices, Ward said.

Wheat has shot up some 50 percent in the last year but is well off its all-time highs reached in March, when prices topped $12.70 a bushel.

The United States is expected to produce 2.4 billion bushels of wheat this year, up 16 percent from 2007, according to Department of Agriculture statistics released last month. Other big wheat-growing countries are also expecting good crops, which has put more downward pressure on prices.

Other agriculture futures traded mostly higher Monday. Soybeans for July delivery added 2 cents to settle at $13.655 a bushel on the CBOT, while July corn futures added 16.5 cents to settle at $6.1575 a bushel. Meanwhile, rough rice futures fell 30 cents to settle at $18.80 per 100 pounds on the CBOT.

In precious metals, gold futures advanced Monday as investors sought bargains after last week's big drop in the metal's value. The drop in gold came as the dollar steadied some against the euro. A stronger dollar encourages investors to sell hard assets like gold and silver, which are considered safe-haven investments in times of rising inflation.

Gold for July delivery rose $5.60 to settle at $892.90 an ounce on the Nymex, after earlier rising as high as $908.

"Gold feels much more balanced at the moment, waiting for fresh direction from either the crude or currency markets," John Reade, analyst with UBS in London, said in a note.

Other precious metals traded mixed Monday. July silver rose 5.5 cents to settle at $16.91 an ounce on the Nymex, while July copper fell less than a penny to settle at $3.5965 a pound.

In energy markets, crude oil rose modestly after an OPEC official said there's no need for the cartel to pump more oil amid record-high prices. Concerns about heating oil supplies also boosted crude prices.

Light, sweet crude for July delivery rose 41 cents to settle at $127.76 a barrel on the New York Mercantile Exchange. Earlier Monday, oil futures fell nearly $10 below a trading record of $135.09 reached May 22.

Other energy futures also traded higher. July heating oil futures rose 5.53 cents to settle at $3.722 a gallon on the Nymex, while July gasoline futures rose 4.25 cents to settle at $3.3907 a gallon.

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