CHICAGO--Grain and oilseed futures rebounded early Friday after a strengthening U.S. dollar and export concerns drove sharp price drops for some contracts Thursday.

While weather forecasts for the U.S. Farm Belt raised the potential for dryness to persist in some soybean-raising areas, analysts cautioned that early gains in agricultural futures markets could evaporate as the U.S. dollar again climbed Friday morning following a stronger than expected report on U.S. employment.

With electronic trading paused until the open outcry session starts at 9:30 a.m. ET, September-dated corn futures were up 1 1/2 cent, or 0.4%, at $3.49 1/4 a bushel at the Chicago Board of Trade.

Corn contracts gained early Friday after falling Thursday to the lowest level in nearly a year over concerns that a rising U.S. dollar could make U.S. grain less competitive on world markets. Wheat contracts on Thursday dropped to their lowest prices in five years on concerns about soft export demand for U.S. inventories.

September wheat futures prices were unchanged early Friday at $4.56 1/2 a bushel in Chicago trading.

Soybean contracts expiring in September were 5 3/4 cents, or 0.7%, higher at $8.85 1/2 a bushel.

Write to Jacob Bunge at jacob.bunge@wsj.com

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(END) Dow Jones Newswires

September 04, 2015 09:39 ET (13:39 GMT)