US corn futures rose 0.8 percent on Monday as the market bounced from around six-month lows, while soya firmed as the dollar fell after European Union leaders agreed on an emergency aid mechanism for debt-hit Greece. Soyabeans received additional support after Friday's US Department of Agriculture report predicted record soyabean exports in this marketing year.
"It is due to the US dollar; obviously the news from Europe has put a lot of pressure on the US dollar and that is supporting the grain markets," said Toby Hassall, an analyst with CWA Global Markets in Sydney. The euro leapt to its highest in nearly a month, surging 1 percent on the dollar and yen as investors who had sold it scrambled to buy it back after euro zone finance ministers agreed a rescue package for Greece.
In what may be the biggest multilateral financial rescue ever, the euro zone and the IMF threw debt-laden Greece a lifeline over the weekend by pledging at least 40 billion euros ($54 billion) in aid, though Athens has yet to activate it. The dollar index, which measures the strength of the dollar against a basket of six major currencies, was down more than 1 percent. A weak dollar makes US commodities attractive as a hedge against inflation.
Chicago Board of Trade corn for May delivery rose 0.8 percent to $3.48-1/2 per bushel by 0357 GMT and soya for May rose half a percent to $9.57-1/4 per bushel. May wheat gained 0.3 percent to $4.67 a bushel. USDA, in its April supply/demand report released on Friday, pegged 2009/10 world soyabean ending stocks at 62.96 million tonnes, up from 60.67 million tonnes in its previous estimate.
But it forecast US soyabean ending stocks at 190 million bushels, a three-week supply, compared with market expectations of 208 million bushels, as strong export demand through March was projected to carry exports to a record 1.445 billion bushels, 13 percent over the prior record set in 2008/09.
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