Corn futures decline one percent as dollar strengthens

Corn futures fell nearly one percent in American trade as the dollar index advanced, following earlier data from the US, the world's largest corn producer and exporter. 

As of 08:02 GMT, corn futures due on December 15 tumbled 0.92% to $3.5475 from the opening of $3.5475, while the dollar index added 0.19% to 92.05 from the opening of 91.87. 

Earlier US data showed the National Association of Home Builders Housing Market Index down to 64 in September from 68, missing expectations of 67. 

Markets look forward to policy decisions by Federal Open Market Committee members in this week's periodic meeting, at which policymakers are expected to unveil their three-year forecasts for inflation, growth, unemployment, and interest rates. 

Last week, the US Department of Agriculture reported a rise in US corn inventories in the agriculture year of 2017/2018 to 2.335 billion bushels, compared to previous official forecasts at 2.273 billion, and market expectations at 2.18 billion. 

Similarly, the USDA raised corn productivity forecasts by 0.4 bushel to 169.9 bushels per donam, compared to previous forecasts of 168.2 bushels, with the department now expecting total corn production this year to amount to 14.184 billion bushels, up from 14.153 billion in the previous forecasts. 

The upgrade in productivity forecasts weighed on prices, noting that the USDA report said that grain projections for the current month don't reflect the impact of the floods and Hurricanes that hit the US recently, adding that the Department will make survey in the affected areas to include the damages in the October report.