US corn futures on Thursday rebounded from a seven-month low after three days of declines in a short-covering bounce and following a government report showing higher ethanol output and lower stocks of the corn-based biofuel. Wheat futures climbed after hitting a two-week low a day earlier, boosted by a weaker dollar and concerns about the outlook for crops in Russia, while soyabeans were narrowly mixed.
"To see a little bit of buying at these levels is not that surprising. The dollar play is coming into it today as well," said Karl Setzer, analyst with Max Yield Co-operative. Chicago Board of Trade July corn rose 4 cents, or 1.1 percent, to $3.53-1/2 a bushel by 10:30 am CDT (1530 GMT) after sinking to a low of $3.48-1/4 earlier in the session, the lowest price for a spot contract since October 21.
The market received a lift from US Energy Information Administration data showing an 11,000-barrel-per-day uptick in weekly ethanol production last week and a sizable 337,000-barrel drawdown in stocks. CBOT July soft red winter wheat gained 3-1/4 cents, or 0.7 percent, to $4.91 a bushel while July hard red winter wheat added 1-1/2 cents, or 0.3 percent, to $5.13-1/2 a bushel.
Wheat prices remain anchored by sluggish US export demand, but the weaker dollar and growing doubts about optimistic Russian wheat crop forecasts buoyed prices. Farmers in Russia's Rostov region, one of the most important for wheat exports, face flat or lower wheat yields this year due to a lack of rain last autumn and the current hot weather may worsen the situation without more rain in the coming weeks. CBOT July soyabeans were 1/2 cent higher at $9.27-1/2 a bushel, rising for a second session following contract lows earlier in the week.