US corn futures rebounded on Thursday from the previous session's 2 percent slide as wet weather delayed the start of planting in the US Midwest and the dollar fell to its lowest point in nearly three years. Wheat rose 1 percent on worries that dry weather was harming winter crops in the United States and Europe while wet conditions stalled spring wheat seeding in the northern US Plains and Canada.
Soyabeans edged higher as the dollar sank and support spilled over from rising corn and wheat. "We're bouncing back on the weather. Despite forecasts for better conditions by the middle of May, the weather looks to be pretty bad through then. And a lower dollar certainly isn't hurting anything either," said Jack Scoville, analyst with The Price Futures Group.
The US dollar on Thursday fell to a near-three-year low against a basket of currencies as investors fretted over low interest rates and the threat of a US credit rating downgrade. Dollar-denominated commodities such as grains tend to rise when the greenback sinks, partly because it increases the buying power of those holding other currencies.
Corn prices dropped to their lowest levels in nearly three weeks on Wednesday as investors liquidated long positions on forecasts for drier weather over the US corn belt eased some concerns about delayed spring planting. But updated forecasts for weekend rains in some areas renewed worries about a late start to seeding at a time when corn stocks are projected to be the tightest since the 1930s.
"It's all weather until we get the crop planted, it's all money trying to outguess the weather," said Paul Haugens, vice president for Newedge USA. US markets are closed on Friday for the Good Friday holiday. Chicago Board of Trade corn for May rose 0.7 percent to $7.37-1/2 a bushel by 10:35 am CDT (1535 GMT) while May soyabeans were up 0.3 percent to $13.62-1/4 a bushel.
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