The benchmark Chicago spot price on Monday (US central time) lifted to $US11.09/bus for wheat delivered in March.

Prices during Monday rose US60c/bus, the limit permitted for one day's trading.

World wheat prices have now surged by 50pc since November 2007.

One of the grain industry stars, canola, also continues to shine, with WCE Canola currently being quoted at $Can678.90/tonne. (See separate story).

This new US grain price surge, and world wheat price surge, come amid mounting concern about the further tightening of the already extreme supply-demand squeeze.

Spiralling world demand for wheat, and indeed for most grains this year, is coming at a time when northern hemisphere harvests have been below expectations.

That supply squeeze comes on top of the crisis precipitated after world wheat stocks fell to historical lows.

The net result of Monday's panic buying across the US, saw trading at the Minneapolis exchange also set new record high prices for corn, soybeans and wheat on the same day. (See separate story)

All futures contracts at the Chicago Board of Trade (CBOT) on Monday, rose by the 60c/bus limit, even for contracts out to July 2010.

Dec ’08, for instance, hit $US10.59/bus, March ’09 hit $US10.65/bus and Dec ’09 hit $9.75/bus.

Contracts for July 2010 delivery closed at $US9.60/bus.

SOURCE: CBOT and Farmonline