Corn futures decline as dollar strengthens

Corn futures fell in American trade as the dollar index hit the highest since November 14, following a basket of data from the US, the world's largest corn producer and exporter, while the Federal Open Market Committee starts its two-day policy meeting in Washington.

As of 09:58 GMT, corn futures due on March 15 fell 0.36% to $3.4775 from the opening of $3.4900, while the dollar index rose to 0.21% to 94.06 from the opening of 93.87. 

Earlier US data showed producer prices rose 0.4% in November in line with expectations and with no change from October's reading, while core prices, excluding food and fuel, rose 0.3%, beating expectations of 0.2% and just below October's 0.4% rise. 

Now markets look upon the FOMC's last 2017 meeting today and tomorrow, with policymakers expected to unveil their three-year forecasts for inflation, growth, unemployment, and interest rates, while expected to also hike rates by 25 basis points for the third time this year. 

The US Department of Agriculture's report last month on global demand and supply for November raised expectations for productivity by 3.6 bushels to 175.4 bushels per donam, compared to market expectations of 172.4 bushels, with the department now expecting total corn output for the year at 14.578 billion bushels.