NEW YORK ( TheStreet) -- U.S. grain commodities fall to yearly lows as favorable weather conditions and lessening conflict in Ukraine will likely lead to more supply in 2014.
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Over the past month, up to six times the normal amount of precipitation fell in parts of Iowa and Illinois, where the largest U.S. growers of corn and soybeans reside.
Close to three-fourths of the nation's corn and soybean crops were in good or excellent condition as of Sunday, according to the Department of Agriculture.
This is a drastic reversal from earlier in the year when winter storms in the first quarter were believed to have severely affected U.S. crop yields, crimping overall production.
If the warm, rainy weather continues, it is likely corn and soybean yields will reach record levels this year the USDA estimated.
Meanwhile, wheat prices have fallen as speculation mounts that larger global crops will increase world stockpiles, offsetting poor U.S. production.
There was a fear earlier in the year that civil conflict between Ukraine and Russia, two of the largest wheat exporters in the world, would lead to supply disruptions of world stockpiles, leading to a steep run-up in the price of wheat.