Investing.com – Corn futures were up for the first time in five days on Tuesday, rebounding from the previous session’s seven-week low as a weaker U.S. dollar and indications that demand from top consumer China will remain strong supported prices.
On the Chicago Mercantile Exchange, corn futures for December delivery traded at USD5.9988 a bushel during European morning trade, gaining 0.45%.
It earlier rose by as much as 0.65% to trade at a daily high of USD6.0150 a bushel.
Copper’s gains came as the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, declined 0.27% to trade at 78.25.
A weaker dollar boosts the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.
Market sentiment recovered after ratings agency Fitch said late Monday that the failure of a U.S. congressional "super committee" to agree on a package of measures to cut the U.S. deficit over the next 10 years was likely to lead to a revision of the rating outlook to Negative, rather than a downgrade.
Fellow ratings agency S&P, which in August stripped the U.S. of its triple-A rating, also said that the breakdown in talks did not merit another downgrade because the inaction would trigger automatic spending cuts of USD1.2 trillion.
Meanwhile, some bargain buying also lent support after corn prices dropped nearly 1.8% on Monday to hit the lowest price since October 5 as fears over debt levels in the U.S. and the euro zone prompted investors to shun riskier assets.
The steep decline triggered some bargain buying from traders reluctant to bet that prices would fall further amid a favorable demand outlook from China.
Chinese customs data released Monday showed that the nation’s corn imports soared to a 13-month high of 304,300 tonnes in October, up 68% from a month earlier and 21% higher from the same month last year.
The strong Chinese import data prompted global financial service provider Standard Chartered to raise its average corn price forecast for the first quarter of 2012 to USD7.7500 a bushel, saying that gloom over U.S. shipments of the grain has been overdone.
Elsewhere on the Chicago Mercantile Exchange, wheat for December delivery advanced 0.53% to trade at USD5.9513 a bushel, while soybeans for January delivery added 0.48% to trade at USD11.5288 a bushel.
On the Chicago Mercantile Exchange, corn futures for December delivery traded at USD5.9988 a bushel during European morning trade, gaining 0.45%.
It earlier rose by as much as 0.65% to trade at a daily high of USD6.0150 a bushel.
Copper’s gains came as the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, declined 0.27% to trade at 78.25.
A weaker dollar boosts the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.
Market sentiment recovered after ratings agency Fitch said late Monday that the failure of a U.S. congressional "super committee" to agree on a package of measures to cut the U.S. deficit over the next 10 years was likely to lead to a revision of the rating outlook to Negative, rather than a downgrade.
Fellow ratings agency S&P, which in August stripped the U.S. of its triple-A rating, also said that the breakdown in talks did not merit another downgrade because the inaction would trigger automatic spending cuts of USD1.2 trillion.
Meanwhile, some bargain buying also lent support after corn prices dropped nearly 1.8% on Monday to hit the lowest price since October 5 as fears over debt levels in the U.S. and the euro zone prompted investors to shun riskier assets.
The steep decline triggered some bargain buying from traders reluctant to bet that prices would fall further amid a favorable demand outlook from China.
Chinese customs data released Monday showed that the nation’s corn imports soared to a 13-month high of 304,300 tonnes in October, up 68% from a month earlier and 21% higher from the same month last year.
The strong Chinese import data prompted global financial service provider Standard Chartered to raise its average corn price forecast for the first quarter of 2012 to USD7.7500 a bushel, saying that gloom over U.S. shipments of the grain has been overdone.
Elsewhere on the Chicago Mercantile Exchange, wheat for December delivery advanced 0.53% to trade at USD5.9513 a bushel, while soybeans for January delivery added 0.48% to trade at USD11.5288 a bushel.