US grains rose for a third straight day early on Wednesday, after a plan by major central banks to inject liquidity into the financial system whetted investor appetite for risk. The move, which should allow European banks to borrow US dollars on easier terms, sparked a round of buying in commodities and financial markets, with the safe-haven dollar tumbling about 1 percent.
Despite the gains, corn, wheat and soyabean futures at the Chicago Board of Trade were heading for monthly losses after being weighed down in November by Europe's debt crisis. In addition, the poor pace of grain exports had pressured prices to multi-month lows last week. "It is strictly the central bank action," said Jim Hemminger, senior risk manager with Top Third Ag Marketing. "Technically we are on pretty solid ground again."
At 10:09 am CST (1609 GMT), CBOT March wheat was up 4 cents at $6.20 per bushel. The spot December contract, which is in the delivery period, rose 7 cents to $6.01-1/2. March corn gained 7-1/2 cents to $6.13 a bushel. January soyabeans rose 15-3/4 cents to $11.40-3/4 per bushel. For the month, corn futures were down 6.4 percent, soyabeans were 5.6 percent lower and wheat has dropped 4.1 percent.
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