Wheat rally takes a break after big summer surge; metals slip as factory orders drop

Wheat rally takes a break after 2-month surge

NEW YORK — A powerful rally in wheat prices is taking a break Tuesday, receding from a nearly 2-year high after surging 62 percent since early June.

Prices had risen nearly 5 percent on Monday after jumping 42 percent in July alone, the biggest monthly gain in at least 51 years, as a severe Russian drought destroyed one-fifth of Russia’s wheat crop.

Forecasters are predicting more hot weather for the next 10 days, so the wheat rally will likely continue through August, says Richard Feltes, senior vice president and director of commodity research for MF Global in Chicago.