GRAINS-Weak US dollar lifts wheat prices

CANBERRA, April 17 (Reuters) - Chicago wheat futures rose on Thursday, supported by a weak U.S. dollar, although much-needed rains in the U.S. wheat belt kept a lid on gains.

Soybeans also climbed after a Bloomberg report on Wednesday said that China would be open to trade negotiations with the United States, something that could revive U.S. soy exports to China.

Corn edged lower even as rain in the U.S. Midwest slowed planting.

FUNDAMENTALS

Wheat for July delivery on the Chicago Board of Trade (CBOT) WN25 was up 0.4% at $5.63-1/4 a bushel at 0213 GMT, while CBOT May soybeans SK25 rose 0.2% to $10.40-1/2 a bushel and July corn CN25 slipped 0.2% to $4.91 a bushel.

All three contracts were on track for weekly falls, with the CBOT closed for a public holiday on Friday.

The U.S. dollar index .DXY was up 0.2% but stuck near three-year lows amid the fallout from U.S. President Donald Trump's tariff policies. USD/ MKTS/GLOB

"Weather continues to improve for the U.S. and the Black Sea which in turn raises the perceived (crop) size of the major exporters," StoneX analyst Bevan Everett wrote of wheat in a client note.

However, excess rain and flooding in the U.S. Midwest have disrupted the planting of corn and soy.

The central bank of Russia, the world's biggest wheat exporter, said the country's 2025 grain harvest could be better than last year's, with a warm winter benefiting winter crops and a larger sowing area for spring crops.

Meanwhile, wheat stocks in Indian government warehouses surged to a three-year high this month, easing supply concerns.

Bearishness from the ongoing trade war unleashed by Trump has already been factored into the market, analysts say, allowing hopes of trade deals with the U.S. to boost the market.

Commodity funds were net buyers of CBOT wheat, corn and soybeans on Wednesday, traders said.

MARKETS NEWS

Global shares fell sharply on Wednesday as U.S. restrictions on chip sales to China and continued tariff uncertainty battered tech stocks, while gold traded at record highs and support for the dollar continued to erode. MKTS/GLOB