The unusual dry weather prevailing in top wheat exporting nations led by the United States and Australia had prompted prices of the basic commodity to dramatically shoot up.

Prices of US wheat jumped on Thursday, while soybean futures likewise extended gains, according to Reuters News.

By 0330 GMT, prices of the Chicago Board of Trade December wheat increased 0.7 per cent to $8.62-1/2 a bushel. November soy inched up 0.9 per cent to $15.22-1/2 a bushel while December corn moved 0.4 per cent up to $7.48-1/2 a bushel.

"We have seen general improvement in risk attitude in the past six to eight hours," commodities strategist Luke Mathews said in Reuters News.

"We still have the case in grain and oilseed markets that despite the seasonal harvest pressure, forecast for inventories remains very tight."

Movement in wheat futures have been pressured by the dry weather enveloping the wheat fields in Australia and the United States, the world's top two wheat exporters.

"The situation in Western Australia is that crop conditions have been too dry for grain filling, so we are likely to see some downgrades in Western Australia wheat production," Mr Mathews said.

"In addition, we continue to see dryness in the northern US plains, which is resulting in some concerns about early plant establishment before the onset of winter."

Australia's wheat exports for the current 2012/13 marketing year, according to the October crop report by the US Department of Agriculture, could have possibly reached only 18.0 million tonnes, below a forecast of 21.0 million made in September.

A poll of 10 analysts in early October by Reuters project Australia's wheat production at 21.4 million tonnes versus government's estimate of 22.5 million.

The poll showed a 27 per cent drop from last year's record crop of 29.5 million on the basis of the prevailing dry weather conditions.