NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

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

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

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.