By Jae Hur and Luzi Ann Javier Jan. 5 (Bloomberg) -- Wheat rose for a second day to a one- month high as a weaker dollar made U.S. grain more attractive. Soybeans and corn climbed as crude oil advanced, potentially increasing use of the crops for biofuel. The U.S. Dollar Index, a six-currency gauge of the strength of the greenback, fell for a third day, losing as much as 0.6 percent to the lowest level in more than two weeks. That made commodities more appealing as alternative assets. Crude neared $82 a barrel as freezing weather in the U.S. and Europe and improving global economies bolstered the demand outlook. “The dollar’s weakness has boosted commodities since the start of this year,” said Tomokazu Amano, research team chief at Mitsubishi Corp. Futures Ltd. in Tokyo. “Commodities appear to have been preferred by investment funds.” Wheat for March delivery rose as much as 0.7 percent to $5.615 a bushel on the Chicago Board of Trade, the highest price for a most-active contract since Dec. 7. The grain was at $5.58 at noon Paris time. Futures fell 11 percent last year. “From a fundamental standpoint, U.S. wheat remains overvalued, with European offers well below U.S. Gulf FOB offers,” said Toby Hassall, a research analyst at CWA Global Markets Pty in Sydney. “This should continue to limit the upside for Chicago wheat futures.” Paris Prices FOB, or free on board, refers to the price of grain loaded on ships for export. Milling wheat for March delivery traded on Liffe in Paris was unchanged at 134.25 euros ($193.50) a metric ton. The dollar index declined as far as 77.089, the lowest level since Dec. 17. A weaker dollar makes U.S. crops cheaper for holders of other currencies. Crude oil for February delivery climbed as much as 0.6 percent to $81.99 a barrel in New York, rising for a ninth day. Higher crude prices may boost demand for crops as alternative fuels. The contract yesterday added 2.7 percent to $81.51, the highest settlement price since Oct. 9, 2008. The Reuters/Jefferies CRB Index of 19 raw materials climbed as much as 2.2 percent yesterday to the highest level since October 2008, with crude gaining to a 14-month high and copper touching a 16-month high. Corn for March delivery rose 0.2 percent to $4.1925 a bushel. The grain reached $4.2625 yesterday, the highest since June 19. The most-active contract rose 1.8 percent last year. March-delivery soybeans climbed 0.3 percent to $10.615 a bushel. The contract gained 0.9 percent yesterday and touched $10.7475, the highest price since Dec. 16. The oilseed added 7 percent last year. To contact the reporters on this story: Jae Hur in Tokyo at jhur1@bloomberg.net; Luzi Ann Javier in Singapore at ljavier@bloomberg.net

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