April 5, 2010

US wheat, corn rise as weaker dollar lures importers, investors

Wheat, corn and soy rose as a weaker dollar boosted the appeal of US crop supplies to importers and investors.

Wheat for May delivery, the most-active contract by volume, rose as much as 1% to US$4.595 a bushel on the CBOT, and was at US$4.5825 at 9:14 a.m. Singapore time. Corn for delivery in the same month gained 0.6% to US$3.465 a bushel, while soy rose 0.3% to US$9.45 a bushel.

The Dollar Index, which tracks the value of the currency against the counterparts from six major trading partners, fell 0.4% to 80.973. China's central bank said in a report posted on April 2 that the dollar will have only a limited rebound this year because of the high fiscal deficit in the US and the nation's low interest rates.

"The weaker dollar is a big factor in grain and soy prices," Eric Bailon, president at Manila-based Paritas Trading Corp., said, adding that the figures makes wheat, corn and soy more affordable to overseas buyers.

Grains and oilseeds may also rise as importers and investors resume purchasing after a long weekend, Bailon said. Wheat for July delivery, the most-active contract by open interest, advanced as much as 0.9% to US$4.725 a bushel.

The CBOT and NYSE Liffe in Paris were closed on April 2 for the Good Friday holiday.