Wheat up on prospects for Egyptian sales, softer dollar
Soybeans were also higher, led by strength in soyoil and Malaysian palm oil, while corn was choppy.
At the CBOT at 11:50 a.m. CST (1750 GMT), March wheat was up 8-1/2 cents at \\\$5.19-1/2 per bushel, March soybeans were up 8 cents at \\\$9.80, and March corn was down 1/2 cent at \\\$3.83.
Egypt's state grain buyer could buy US wheat to make use of a \\\$100 million credit line made available to it by the United States.
"Part of the conditions of using that grant is to have a tender for US wheat to find the best price," Egyptian Supplies Minister Khaled Hanafi said. "The first slot that will be available for us to use is \\\$100 million."
Technical buying also boosted wheat. CBOT wheat was due for a bounce after falling nearly 15 percent during January, its biggest monthly decline in three years, amid ample world supplies.
"We have been oversold for quite some time and are seeing some short-covering coming into the market," said analyst Shawn McCambridge of Jefferies Bache in Chicago.
Also supportive was a setback in the dollar, coupled with strength in crude oil and equity markets. Similar trends on Tuesday triggered a broad commodities rally.
Soybeans rose as surging Malaysian palm oil futures lifted global vegetable oils markets, including CBOT soyoil.
Malaysian palm climbed more than 5 percent, its biggest single-day gain since October 2010, after plans by Indonesia's government to ramp up biodiesel subsidies passed a legislative hurdle.
Higher subsidies could boost the use of palm oil for blending into biodiesel, demand for which has dwindled after crude oil prices crashed 60 percent between June and late January.
Analysts said the outlook for a record Brazilian soybean harvest remained a drag on soy prices.
"Weather forecasters continue to expect timely rainfall in most Brazilian crop areas," Tobin Gorey, director of agricultural strategy for Commonwealth Bank of Australia, said in a note to clients.
US soybean export sales in the week ended Jan. 29 came in at the high end of market estimates but were the second-lowest so far this year, indicating a seasonal slowdown. Prices at 11:48 a.m. CST
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