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U.S. corn trades near 2-week peak but outlook remains clouded

Published 02/05/2015, 06:42 AM
Updated 02/05/2015, 06:42 AM
Corn futures trade near 2-week high but gains remain limited

Investing.com - U.S. corn futures recovered from the previous session's losses to trade near a two-week high on Thursday, as a broadly weaker U.S. dollar lent support.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.56% to 94.05.

A weaker dollar boosts the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.

On the Chicago Mercantile Exchange, US corn for March delivery tacked on 3.48 cents, or 0.91%, to trade at $3.8688 a bushel during U.S. morning hours, after hitting a daily peak of $3.8700. Corn hit a two-week high of $3.8840 earlier in the week.

A day earlier, US corn for March delivery lost 2.2 cents, or 0.58%, to settle at $3.8340.

Despite recent gains, corn remained vulnerable to further losses amid reduced demand for corn-based ethanol and ample supplies in the U.S.

Prices fell to $3.6560 last Friday, the weakest level since November 20.

Meanwhile, US wheat for March delivery traded at $5.1388 a bushel, up 3.27 cents, or 0.64%.

The March wheat contract declined 2.6 cents, or 0.54%, on Wednesday to close at $5.1100, after touching a session high of $5.2160, the most since January 27.

Wheat has been under pressure in recent weeks amid ample global supplies and indications of reduced demand for U.S. wheat.

Prices of the grain fell to $4.9220 on Monday, the lowest level since October 10.

Elsewhere on the Chicago Board of Trade, US soybeans for March delivery picked up 4.48 cents, or 0.46%, to trade at $9.7688 a bushel.

On Wednesday, the March soybean contract tumbled 15.0 cents, or 1.52%, to end at $9.7200.

Prices of the oilseed hit $9.5500 last Friday, a level not seen since October 21 amid concerns over weakening demand from China and as optimism over crop prospects in Brazil and Argentina underlined worries over ample global supplies.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.

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