* Strong euro, decline in U.S. jobless claims power rally

* Copper highest since May; wheat in biggest 37-year run

* CRB at 12-week highs, matching peak in euro

* Coming up: US second-quarter economic data, due Friday

By Barani Krishnan

NEW YORK (Reuters) - The momentum in the
commodities rally intensified Thursday as copper hit
three-month highs on a weak dollar and drop in U.S. jobless
claims and wheat headed for its best monthly gain since 1973 on
supply woes.

U.S. coffee futures ended at a 12-1/2 year top while raw
sugar vaulted to near a five-month peak. Oil prices rose too.

The Reuters-Jefferies CRB index, which acts as a
global benchmark for commodities, hit a 12-week high on the
broad-based rally, matching the euro's peak against the dollar

The euro rallied after a reading for the euro zone economic
sentiment reached a 28-month high. A stronger euro enables
users of that currency to buy more dollar-denominated
commodities.

An unexpected fall in weekly U.S. jobless claims also
bolstered risk appetite among investors who saw a ray of hope
for the recovery of the anemic labor market

Base metals such as copper and aluminium gained most from
investors' improving sentiment over the economy.

"The rally in base metals prices over the past week has
broken a month-long period of range trading and the upward
momentum remains strong for now," London-based Barclays Capital
said in a note.

"While the fundamentals have been improving for some time,
it is the change in market perception of future economic
conditions that seems to have sparked this recent rally."

Analysts said all eyes will be on U.S. second-quarter
economic growth numbers due on Friday, for a further indication
of where the world's largest economy was going.

Copper prices in both New York and London have gained 10
percent through July, focusing on demand -- both real and
anticipated -- from top metals buyer China and selective U.S.
data that signal traction in economic recovery.

In Thursday's session, New York's most-actively traded
copper futures' contract, September, rose 1.6 percent to
$3.2970 a lb in New York, a level not seen since May 4.

London's benchmark three-month copper futures contract
rose 1.6 percent, or $118, to $7,283 a tonne -- also
marking a peak from May 4.

Oil prices also climbed on the back of the weaker dollar
and declining jobless claims. U.S. crude oil's front-month
contract rose $1.90, or 2.5 percent, to a session peak
of $78.89 a barrel.

Wheat posted a fresh 13-month peak closing in on the
biggest monthly gain since 1973 as relentless dry weather
stressed crops in eastern Europe, particularly third-largest
wheat exporting nation Russia.

Wheat prices have risen 30 percent through July. In
Thursday's session, the market received an extra boost from a
much larger-than-expected number from the U.S. Department of
Agriculture for export sales.

The USDA report showed wheat export sales last week hit a
six-week high at 919,000 tonnes even as prices soared amid
concerns that drought will decimate the crop in Russia.

"It was a major surprise," Joe Victor, analyst at Allendale
Inc in McHenry County, Illinois, said, referring to the data.

Wheat's front-month futures contract in Chicago jumped 16.5
cents, or 2.7 percent, to a session peak of $6.32 a bushel.

Prices at 12:45 p.m. EDT (1645 GMT)

LAST NET PCT YTD

CHG CHG CHG
US crude <CLc1> 77.82 0.83 1.1% -1.9%
Brent crude <LCOc1> 77.12 1.06 1.4% -1.0%
US gold <GCQ0> 1163.10 2.60 0.2% 6.1%
Gold <XAU=> 1163.50 0.95 0.1% 6.1%
US Copper <HGU0> 327.75 3.20 1.0% -2.1%
LME Copper <CMCU3> 7237.75 67.75 0.9% -1.9%
Dollar <.DXY> 81.643 -0.536 -0.7% 4.9%
CRB <.CRB> 268.820 2.660 1.0% -5.1%

US corn <Cc1> 377.50 1.25 0.3% -8.9%
US soybeans <Sc1> 1018.00 7.50 0.7% -2.1%
US wheat <Wc1> 623.75 8.25 1.3% 15.2%

US Coffee <KCU0> 172.15 4.75 2.8% 26.6%
US Cocoa <CCU0> 3045.00 35.00 1.2% -7.4%
US Sugar <SBV0> 19.38 0.51 2.7% -28.1%

US silver <SIU0> 17.555 0.114 0.7% 4.2%
US platinum <PLV0> 1557.30 15.60 1.0% 5.9%
US palladium <PAU0> 486.70 17.95 3.8% 19.0%
(Editing by Lisa Shumaker)