Corn futures are turning higher as dryer weather, improving demand and progressive harvesting boosts prices.
The December contract price in corn futures crept steadily forward in Tuesday commodities futures markets trading, last up .86 percent at 351-2 a bushel.
Commodities markets participants are focused on weather for the U.S. harvest as global corn demand is increasing. The weekly corn crop harvest report showed 61 percent of the crop was harvested versus 46 percent last week and 70 percent a year ago. The ten year average at this time of year is 57 percent, according to the government.
The USDA reported on Monday that export inspections for corn for the 2016 to 2017 marketing year as of October 20th are now 14.8 percent of the USDA forecast versus the five year average of 13.6 percent.
After excessive rain during the growing season, the weather has turned dry and warm in some areas of the Midwest. Little or no rain has fallen in much of Iowa and Illinois, the biggest producers of corn and soybeans in the U.S., in the past month, according to the National Weather Service.
In Illinois, corn harvest was at 83 percent versus 91 percent a year ago and compared to the 75 percent average. In Indiana, corn harvest was at 64 percent versus the 56 percent average.
Some commodities futures markets analysts say they are now focusing on South America’s corn production as the region continues to plant and start the developmental stages.
The remainder of the U.S. economic calendar was light by commodity futures markets standards. The S&P CoreLogic Case-Shiller 20-city home price index came in at 5.1 percent compared to economists’ expectations of 5 percent. The slight uptick was due to a steady employment market, low mortgage rates and a decreasing supply of homes, according to the report. Demand remains high on the West Coast and among first-time homebuyers.
The October Consumer Confidence report The Consumer Confidence Index hit 98.6 in October, down from 104.1 in September, according The Conference Board. Economists expected the index to hit 101.5 in October.
Wednesday’s economic data of importance to the commodities futures markets includes New Home Sales for the month of September.