* Corn reaches highest since March 2013
* Traders await USDA crop report on May 12
* Dryness in Brazil fuels supply fears
* Soybeans hit highest since October 2012
CHICAGO, May 7 (Reuters) - Concerns that global crop
supplies will remain lean pushed Chicago Board of Trade corn
futures to their highest price since March 2013 on Friday, while
soybean futures reached their highest since October 2012.
The markets surged before the weekend as traders braced for
the potential of further rallies driven by tightening
inventories and a monthly U.S. Department of Agriculture crop
report due on Wednesday.
In its first estimates for 2021/22, the USDA is expected to
predict U.S. soybean ending stocks will remain tight at 138
million bushels, according to a Reuters poll of analysts. They
projected the agency will reduce its 2020/21 stocks estimate to
117 million bushels from 120 million.
"The market's gone vertical this week," said Don Roose,
president of Iowa-based broker U.S. Commodities.
The most-active corn contract settled 13-1/2 cents
firmer at $7.32-1/4 per bushel and reached a peak of $7.35-1/4,
its highest price since March 2013. The contract gained a
whopping 8.8% this week.
Soybeans climbed 20-1/4 cents to $15.89-3/4 per bushel
and reached their highest price since October 2012 at
$15.99-1/2. For the week, the most-active contract rose 3.6%.
Wheat jumped 8-1/2 cents to $7.61-3/4 per bushel at
the CBOT and traded near an eight-year high reached last week.
The gains built on a sizzling rally that began last year as
China accelerated imports of U.S. farm products.
In their biggest purchase since January, Chinese importers
bought 1.36 million tonnes of U.S. corn that will be shipped
during the 2021/22 marketing year, which starts in September,
according to USDA.
In Brazil, a rival supplier, forecasts continued to show
little rain for parched corn-growing areas.
Dryness raises the threat of deteriorating yields for the
country's second annual corn harvest, considered crucial to
boosting short-term availability ahead of the U.S. harvest later
in the year.
"It's needed more than ever, but it's not forthcoming,"
Rabobank analyst Michael Magdovitz said.
(Reporting by Tom Polansek in Chicago, Gus Trompiz in Paris and
Naveen Thukral in Singapore; Editing by Andrea Ricci)