Chicago Board of Trade (CBOT) grains futures closed higher on Tuesday with wheat futures jumped more than 2 percent to a two-year high, on growing worries about crop health in the dry U.S. Plains.

The rally stemmed from a U.S. Agriculture Department report released on Monday afternoon that showed crop conditions down from a week ago and well below market expectations.

The most active corn contract for July delivery rose 3.75 cents, or 0.99 percent, to 3.81 dollars per bushel. July wheat delivery rose 11 cents, or 2.53 percent, to 4.45 dollars per bushel. July soybeans added 1.25 cents, or 0.13 percent, to 9.325 dollars per bushel.

Weather concerns also sparked buying in corn and soybean futures, which firmed as forecasts for key Midwest growing areas predicted less rain than earlier outlooks.

Monday's crop condition report from the U.S. Department of Agriculture (USDA) assessed the spring wheat crop at 45 percent good-to-excellent as of June 4, down 10 percentage points from a week earlier. Analysts had been expecting a good-to-excellent rating of 53 percent.

According to the report, U.S. soybeans were rated by the USDA at 66 percent good-to-excellent, and U.S. corn was rated at 67 percent good-to-excellent, matching analysts' forecasts.