Corn climbs as USDA holds quality ratings steady

Corn futures rose in American trade off November 15 lows for the tenth session out of 13, while the dollar index eked out gains for the day, following earlier data from the US, the world's largest corn producer and exporter, and amid dry weather and heat waves across America. 

As of 07:26 GMT, corn futures due on December 15 rose 1.38% to $3.8650 from the opening of $3.8125, marking June 14 highs, while the dollar index added 0.14% to 94.48 from the opening of 94.35. 

USDA Ratings, Inspection 

The US Department of Agriculture released its weekly Crop Progress Report, holding quality ratings for corn steady at 72% as good-to-excellent in the week ending last Sunday, while cutting ratings in Illinois to 80% from 82%, and Missouri to 33% from 35% as good-to-excellent.  

The USDA also reported inspection of 1.66 million tonnes of corn product destined for exports in the week ending July 26, up from 1.33 million in the previous reading, with total inspections for the marketing year starting September now reaching 51.5 million tonnes, compared to 54.5 million last year. 

US Treasury Secretary Steven Mnuchin lauded the the recent 4.1% growth rate for the economy in the second quarter, expecting a few years of sustained growth above 3%. 

He said that US President Donald Trump's talks with European Commission President Jean-Claude Juncker were focused on removing barriers before the American agricultural sector, and on inflation, he conceded that the Federal Reserve has to increase interest rates as the economy gears up and grows faster. 

On another note, US Secretary of Agriculture Sonny Perdue recently announced a $12 billion grant for farmers in food purchases and trade incentives to counter the harm done by the tariff dispute with China and the European Union. 

Stream of US Data 

Earlier US data showed personal spending rose 0.4% as expected in June, slowing down from 0.5% in May, while personal income rose 0.4% as expected as well. 

Unit labor costs rose 0.6% in the second quarter, slowing down from 0.8% in the first quarter and below estimates of 0.7%. 

The S&P House Price Index rose 0.2% m/m as expected in May, up from 0.16% in April, while slowing down to 6.51% on a yearly basis from 6.69% in May. 

Chicago PMI rose to 65.5 in July from 64.1 in June, beating expectations of 61.9. 

The CB consumer confidence survey rose to 127.4 in July from 127.1, revised from 126.4 in June, beating estimates of 126.5.