GRAINS-Weaker dollar supports wheat, tariff worry hits corn and soybeans

Recasts with European trade, adds new comment, changes dateline

By Michael Hogan

HAMBURG, March 3 (Reuters) - Chicago wheat rose on Monday from one-month lows hit on Friday as export-boosting dollar weakness generated bargain buying, while concern about crop weather in the U.S. and Black Sea region also supported.

Corn and soybeans were undermined by worries over the impact of U.S. President Donald Trump's tariffs on agricultural trade, both continuing weakness seen on Friday.

Chicago Board of Trade most-active wheat Wv1 was up 0.4% to $5.58 a bushel at 1211 GMT.

Corn Cv1 fell 0.6% to $4.66-1/2 a bushel. Soybeans Sv1 dropped 0.05% to $10.25-1/4 a bushel.

“Wheat is being supported by foreign exchange moves today with the dollar weakness generating some purchase interest after Friday’s falls in Chicago,” said Matt Ammermann, StoneX commodity risk manager.

“There is also some weather support with concern about dryness in the U.S. and Black Sea region. Rising Russian prices also mean that U.S. Gulf hard red winter wheat export prices are looking cheaper than Russian wheat for the first time in years.”

Traders said a sale of 65,000 metric tons of U.S. animal feed wheat to South Korea underlined improving U.S. export competitiveness.

Concerns about possible retaliation against U.S. agricultural exports are growing as the Trump administration says new tariffs on imports from Mexico and Canada and additional tariffs on goods from China are set to begin on March 4.

China is a major importer of U.S. soybeans and Mexico is a key corn buyer while wheat could also be hit by retaliation against any U.S. tariffs.

“Corn and soybeans remain under downward pressure because of concern about the impact of any U.S. import tariffs on U.S. exports of agricultural commodities," Ammermann said. "U.S. grain and soybean exports could be in the line of for retaliation as China especially hardly buys any other U.S. products.”