Corn prices rally to two-year highs

Corn futures jumped over one percent in American trade to June 22, 2016 highs, even as the dollar index scaled January 10 highs, following earlier data from the US, the world's largest corn producer and exporter. 

As of 07:58 GMT, corn futures due on July 15 rose 1.25% to $4.0575 from the opening of $4.0075, while the dollar index muscled up 0.69% to 92.47 from the opening of 91.84. 

Earlier US data showed the ISM manufacturing PMI slowed down to 57.3 in April from 59.3 in March, missing expectations of 58.4. 

ISM manufacturing prices rose to 79.3 from 78.1 in March, beating forecasts of 78.3. 

Construction spending fell 1.7% in March, compared to a 1% rise in February, and missing forecasts of a 0.5% increase, as the Federal Open Market Committee starts its two-day periodic meeting to decide on interest rates and monetary policy. 

The US Department of Agriculture reported that 17% of corn product has been cultivated so far by April 29, compared to 5% in the previous week, while considerably below 27% in the same period of 2017. 

The USDA also reported 1.47 million tonnes of inspected corn product in the week ending April 26, compared to 1.74 million tonnes in the previous week, with total inspected product now amounting to 31.3 million tonnes in the current marketing year, down from 38.5 million in the same period of last year.