Adds latest US prices

By Tom Polansek

CHICAGO, May 13 (Reuters) - U.S. wheat futures pulled back on Wednesday after surging in the previous session on an unexpectedly low forecast for the drought-hit U.S. crop, as attention turned toward a high-stakes U.S.-China summit where agricultural trade is on the agenda.

Corn and soybean futures edged higher as traders watched for any deals for China to buy U.S. crops or the feed ingredient called distiller's dried grains with solubles, or DDGS.

U.S. President Donald Trump received a lavish welcome in Beijing as he prepared to ask China's Xi Jinping to "open up" to U.S. business at the start of their two-day summit.

"I don't look for a blockbuster ag deal, but any notable corn/DDGS purchases could still make a significant difference," said Arlan Suderman, chief commodities economist for StoneX.

"I still wouldn't be surprised if wheat is a part of the deal."

The most-active wheat contract Wv1 on the Chicago Board of Trade (CBOT) was down 5 cents at $6.74 a bushel at 11:15 a.m. CDT (1615 GMT), after earlier setting the highest in almost two years at $6.83-1/4 per bushel. Deferred futures months set contract highs.

K.C. wheat futures KWv1, which represent the hard red winter crop most affected by drought, also eased after setting contract highs. CBOT and K.C. wheat contracts traded with expanded 70-cent limits after climbing by their typical 45-cent limits on Tuesday.

In closely watched forecasts for the upcoming 2026/27 season, USDA on Tuesday projected the smallest U.S. wheat crop since 1972, with its estimate falling below trade expectations. The forecast heightened fears about drought damage in the U.S. Plains.

"Often conservative and cautious in its crop forecasts, the USDA shocked the entire market by making, as early as this month of May, an extreme cut to its forecast for the 2026 U.S. wheat crop," Argus Media analysts said.

In its outlook, USDA also pegged global wheat stocks in 2026/27 below analysts' average forecast, reflecting a drop in output in several major producing countries. Asian flour millers rushed to secure wheat cargoes after an absence of more than two months, traders said.

The Iran war has also underpinned grain markets by threatening to weigh on farm production because of rising energy and fertilizer costs.

CBOT corn Cv1 was up 3/4 cent at $4.80-3/4 a bushel, and soybeans Sv1 rose 1-3/4 cents to $12.28-1/2 a bushel.