CBOT wheat surges over adverse crop conditions

CHICAGO, May 3 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural commodities closed higher on Thursday with wheat prices rising more than two percent over drought-hit crop conditions.

The most active corn contract for July delivery rose 3 cents, or 0.74 percent to settle at 4.08 dollars per bushel. July wheat delivery went up 11.25 cents, or 2.14 percent to close at 5.38 dollars per bushel. July soybeans were up 10.25 cents, or 0.98 percent to settle at 10.5325 dollars per bushel.

The U.S. Department of Agriculture recently reported that only 13 percent of the Kansas wheat crop could be rated good to excellent.

As wheat quality experts were out on their annual crop tour of wheat this week, they reportedly found that the crop was indeed affected by dryness, and in many areas the yield projections were lower than recent years.

Adverse crop conditions in several other wheat production areas world wide have also driven the wheat market higher.

Meanwhile, short-covering and fund demands pushed up the corn and soybean prices on Thursday, said market observers.

However, analysts with AgResource company warned against chasing CBOT rally amid uncertainty of the outcomes of the U.S.-China trade talks and NAFTA negotiations. Enditem