Investing.com - Corn futures advanced on Tuesday, hovering below a three-week high as warmer-than-normal weather in key corn growing states in the U.S. added to concerns over deteriorating crop conditions, while a weaker U.S. dollar also lent support.
On the Chicago Mercantile Exchange, corn futures for September delivery traded at USD7.0762 a bushel during European morning trade, jumping 1.54%.
It earlier rose as much as 1.7% to trade at USD7.0862 a bushel, the highest price since July 15, when prices rose to a three-week high of USD7.1075 a bushel.
The U.S. National Weather Service said on Monday that weather patterns indicated a "massive" heat wave would develop over the central U.S. states next week.
According to the weather group, temperatures in parts of Iowa and Illinois were forecast to reach as high as 105 Fahrenheit (41 Celsius), potentially threatening yields and reducing the quality of the harvest.
Iowa and Illinois are the two largest corn growers in the U.S., accounting for nearly 29% of U.S. supplies.
The U.S. Department of Agriculture said in its weekly crop progress report published Monday that approximately 11% of U.S. corn crops were rated in ‘poor’ to ‘very poor’ conditions in the week ended July 17, up from 9% a week earlier.
Nearly 66% of the crop was in ‘good’ to ‘excellent’ condition, compared to the five year average of 73% for this time of year.
The U.S. is both the world's largest corn producing nation and the world's largest exporter of the grain.
Weakness in the dollar also contributed to corn’s strength. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.44% to trade at a four-day low of 75.35.
A weaker dollar boosts the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.
Elsewhere, wheat for September delivery rallied 2.45% to trade USD7.0488 a bushel, while soybeans for August delivery added 0.62% to trade at USD13.9100 a bushel during European morning trade.
On the Chicago Mercantile Exchange, corn futures for September delivery traded at USD7.0762 a bushel during European morning trade, jumping 1.54%.
It earlier rose as much as 1.7% to trade at USD7.0862 a bushel, the highest price since July 15, when prices rose to a three-week high of USD7.1075 a bushel.
The U.S. National Weather Service said on Monday that weather patterns indicated a "massive" heat wave would develop over the central U.S. states next week.
According to the weather group, temperatures in parts of Iowa and Illinois were forecast to reach as high as 105 Fahrenheit (41 Celsius), potentially threatening yields and reducing the quality of the harvest.
Iowa and Illinois are the two largest corn growers in the U.S., accounting for nearly 29% of U.S. supplies.
The U.S. Department of Agriculture said in its weekly crop progress report published Monday that approximately 11% of U.S. corn crops were rated in ‘poor’ to ‘very poor’ conditions in the week ended July 17, up from 9% a week earlier.
Nearly 66% of the crop was in ‘good’ to ‘excellent’ condition, compared to the five year average of 73% for this time of year.
The U.S. is both the world's largest corn producing nation and the world's largest exporter of the grain.
Weakness in the dollar also contributed to corn’s strength. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.44% to trade at a four-day low of 75.35.
A weaker dollar boosts the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.
Elsewhere, wheat for September delivery rallied 2.45% to trade USD7.0488 a bushel, while soybeans for August delivery added 0.62% to trade at USD13.9100 a bushel during European morning trade.