US corn futures climbed more than 1 percent on Wednesday on short-covering and technical buying after recent contract lows and on expectations that a weaker US dollar may revive slumping export demand. Wheat also rose about 1 percent after hitting one-month lows in the previous session, while soyabeans eased after two sessions of gains.
Corn fell in the wake of Friday's bearish US Department of Agriculture crop report showing massive stocks and a bigger-than-expected US harvest. But failure to extend those losses since then prompted speculation that a near-term low had been achieved. Chicago Board of Trade March corn jumped 4-1/4 cents, or 1.2 percent, to $3.52-1/2 a bushel by 11:57 am CST (1757 GMT). After more than a month of mostly range-bound trade, the contract was on pace for its largest percentage gain since mid-November.
Still, March corn faced chart resistance at its 50-day moving average, a technical level it has largely failed to breach since late October. Grains also drew support from a recent weakening of the US dollar, which makes dollar-denominated commodity exports more affordable for those holding other currencies. The dollar index
stabilized on Wednesday after sinking to a three-year low on Monday. CBOT March soft red winter wheat gained 4 cents, or 1 percent, to $4.20-1/2 a bushel, rebounding after three sessions of declines. March soyabeans fell 1-1/2 cents to $9.66-1/2 a bushel, the first lower day in three. The soyabean market remained underpinned by dry weather in Argentina, although favourable growing conditions in Brazil have boosted hopes of a bumper crop there.
Traders were evaluating rain forecasts developing for Argentina, with projections for some light showers in the week ahead in the Pampas farm belt.