Corn rallies 2%, dollar hits two-week high

Corn futures rose nearly three percent in American trade while the dollar index eked out gains, following earlier data from the US, the world's largest corn producer and exporter. 

As of 07:58 GMT, corn futures due in December rose 2.67% to $3.6575, while the dollar index added 0.16% to 95.29. 

USDA Reports Sales

The US Department of Agriculture reported corn sales at 1.71 million tonnes in the week ending September 20, compared to a 1.38 million in the previous week. 

Mexico came at the top with 62.3 thousand tonnes, followed by Guatemala at 161.4 thousand tonnes, then Japan and Egypt at 124.5 thousand and 110.5 thousand respectively. 

Last month, the USDA raised forecasts for corn output to 14.827 million tonnes bushels, or 181.3 per bushel, from 14.586 million bushels, or 178.4 per bushel in the August report. 

The USDA expects corn inventories in the marketing year 2018-2019 to reach 1.684 billion bushels, up from 1.636 billion in previous forecasts. 

US Manufacturing, Construction Data 

Earlier US data showed the final reading for the Markit manufacturing PMI steadied at 55.6 as expected, compared to 54.7 in August. 

US ISM manufacturing PMI receded to 59.8 in September from 61.3, back then the highest since February 2011, missing estimates of 60.1. 

ISM manufacturing prices receded to 66.9, the lowest since December 2017, from 72.1 in August, missing estimates of 72.0. 

Finally, construction spending rose 0.1%, slowing down from 0.2% in July, and missing estimates of 0.5%.