Grains rose Monday as optimism about a resolution to the euro zone debt crisis helped weaken the U.S. dollar and spurred investors to buy risk assets such as agricultural commodities that had fallen to multi-month lows.
Short-covering also boosted wheat, while higher crude oil added to momentum for soybeans and corn, which are used to produce biofuels.
“The market was heavily oversold,'' said Jason Roose, vice-president of U.S. Commodities in Iowa. “And we're at very importable (price) levels now.
“We're a little more competitive and I think that's why we're seeing this rally today.''
Chicago Board of Trade corn for March delivery rose 11 cents or 1.9 percent to $6.01 per bushel as of 9:51 a.m. CST (1551 GMT).
Actively traded March wheat gained 12-1/2 cents or 2.1 percent to $6.01-1/2 a bushel.
Both grains slightly added to overnight gains in European trading hours.
Open interest in Chicago wheat has fallen close to setting a fresh 10-month low. That indicates some investors are weary of the market's recent volatility and the unpredictable nature of the impact from the euro debt crisis, Roose said.
January soybeans rose 15-3/4 cents or 1.5 percent to $11.22-1/2 per bushel.
Equities rose and crude oil spiked as hopes grew that euro zone leaders would unveil fresh measures to resolve the two-year-old debt crisis.
Germany and France were exploring radical ways to integrate euro zone countries in order to impose tighter budget control, European Union sources told Reuters over the weekend.
Plummeting grain prices have already stoked expectations that China would accelerate buying of soybeans and corn.
China was expected to import about 13 million tonnes of the oilseed in the first quarter, which is 18.5 percent higher than the year-ago period, the official China National Grain and Oils Information Centre said on Friday.
Crop weather in South America remains favorable, with no major concerns other than potential dryness in southern Brazil, said meteorologist John Dee of Global Weather Monitoring. But those areas should see rain this week, Dee said.