Corn hits week highs as dollar backs off two-week high

Corn futures rose over one percent in American trade off November 15 lows for the third session as the dollar index backed off November 13 highs, following earlier data and developments from the US, the world's largest corn producer and exporter. 

As of 08:58 GMT, corn futures due in March rallied 1.29% to $3.7325, marking November 21 highs, while the dollar index slid 0.55% to 96.83 away from two-week highs. 

The US Department of Agriculture reported inspections of 1.12 million tonnes of corn product destined for export in the week ending November 22, compared to 846 thousand tonnes in the previous week, and 643.3 thousand in the same period of 2017, with total inspected product now amounting to 13.1 million tonnes so far this year, up sharply from 7.28 million in the same period of last year. 

US Growth, Trade, Housing Data 

US GDP growth clocked in at 3.5% according the second reading for the third quarter, slightly missing estimates of 3.6%, and the same as the first reading, while also below the second quarter's 4.2%. 

US goods trade balance showed a deficit of $77.2 billion in October, up from $76.3 billion in September, while wholesale inventories rose 0.7%, accelerating from 0.4% in September and above estimates of 0.5%. 

New home sales fell 8.9% to an annualized 544 thousand units, compared to a 1% increase in September to 597 thousand, while analysts expected a 4% increase to 575 thousand, while the Richmond manufacturing index receded to 14 from 15 in November, missing estimates of 16.  

 Federal Reserve Chair Jerome Powell delivered a speech today titled "The Federal Reserve's Framework for Monitoring Financial Stability" at The Economic Club of New York, where he noted how interest rates are still below neutral levels, while adding that gradual rate hikes represent the best balance between the risks of accelerating or slowing down the pace of policy tightening.