GRAINS-Soy, wheat futures rise as dollar hits four-month low

By Tom Polansek

CHICAGO, Jan 27 (Reuters) - Chicago Board of Trade wheat and soybean futures crept higher on Tuesday as a sliding U.S. dollar underpinned prices.

Corn futures traded slightly lower.

On Monday, wheat Wv1 set a six-week high, soybeans Sv1 a four-week peak and corn Cv1 a two-week top before all three crops finished lower, as fears subsided that a U.S. winter storm would damage wheat crops and disrupt grain logistics.

The drop in the dollar index =USD, which extended losses to another four-month low, helped grains to steady after Monday's pullback, making U.S. supplies look cheaper overseas, analysts said. FRX/

"The markets are seeing a modest rebound after yesterday's sell-off," CHS Hedging said in a note.

Most-active CBOT wheat futures Wv1 were up 1 cent at $5.23-1/2 a bushel by 12:20 p.m. CST (1820 GMT), while soybeans Sv1 rose 6 cents to $10.67-3/4 a bushel.

Gains in soyoil futures helped to support soybeans, an analyst said.

CBOT corn Cv1 dipped 2 cents to $4.26-1/4 a bushel.

"Stock markets are up, and commodity currencies are performing well against the weak U.S. dollar," Peak Trading Research said in a note, calling the context bullish for grains.

Grain and soybean markets remained capped by ample global supplies, including a projected record Brazilian soybean harvest. Traders expect China to turn to Brazil for imports in the coming months after a recent wave of U.S. soybean purchases.

However, the availability of Brazil's new crop was limited, with harvesting still in its early stages and advance sales by farmers relatively slow, analysts said.

"Agricultural producers in Brazil appear to be somewhat more selective in their negotiations due to what they consider to be too low prices," Commerzbank said.

In other news, U.S. President Donald Trump travels to Iowa, seeking to shore up support in a Midwestern political battleground. Mounting stress in the farm economy and delays in biofuel policy are testing the patience of farmers and renewable-fuel producers.