By Bloomberg News Feb. 26 (Bloomberg) -- Corn advanced in Chicago trading on speculation that a slide in the dollar against other currencies may boost demand for farm commodities from the U.S., the biggest exporter of the crops. Soybeans also gained. The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, fell for a third day as a struggling labor market clouds outlook of the economic recovery. Federal Reserve Chairman Ben S. Bernanke said the U.S. economy requires low interest rates to encourage demand. “The commodities market is closely responding to the dollar because little fundamental news has changed elsewhere,” Chen Baomin, analyst at Jilin Grain Group Co., said by phone from Dalian. As dollar weakens, demand for grains and other commodities climbs, he said. Corn futures for May delivery gained as much as 0.9 percent to $3.865 a bushel in after-hour trading on the Chicago Board Trade. It traded at $3.86 at 2:21 p.m. Beijing time. The price is down 6.9 percent this year. Soybean futures for May delivery rose 0.2 percent to $9.5175 a bushel in Chicago. The price has dropped 9.2 percent this year as countries, including China, the biggest buyer, switched to buying a record harvest in Brazil and Argentina, the largest exporters behind the U.S. Wheat for May delivery advanced 0.6 percent to $5.0675 a bushel. The price has dropped 6.5 percent this year, partly on forecasts for bigger global inventories. The number of Americans filing first-time claims for unemployment insurance unexpectedly increased last week, a sign that the economic recovery will be uneven as the labor market struggles to rebound. Initial jobless applications rose by 22,000 to 496,000 in the week ended Feb. 20, the highest level in three months, Labor Department figures showed today in Washington. The total number of people receiving unemployment insurance gained and the four- week moving average of weekly claims jumped close to a three- month high. For Related News and Information: Top commodity stories: CTOP Top agriculture stories: TOP AGR Food prices: STNI FOODPRICES Cash commodity prices: AGGP Global wheat-crop calendar: CCAL WHEAT

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