EU wheat prices surged to more than one-year highs at the beginning of last week as prolonged drought in some western bloc areas and heavy rainfall in the east sparked fears that output will be significantly reduced.

On Tuesday, Paris wheat for November, the most popularly traded lot, jumped 2.8% to €154.50 ($194.68) a tonne, the highest for a second-in contract since June last year. Meanwhile, London wheat for November soared 3.6% to £115 ($174.23) a tonne, a level not seen in the nearest-but-one contract since mid-July last year.