US corn exports may rise on higher corn prices; lower dollar

The appeal of US corn has been boosted by a combination of higher corn prices and declining dollar.

The US dollar dropped as much as 0.8 percent against a basket of six major currencies.

Corn prices also increased on concern that a frost before harvest starts next month may damage crops that were seeded later than normal.

The declining dollar will support agricultural prices, said Tomm Pfitzenmaier from the Summit Commodity Brokerage.

Corn would be under US$3 per bushel if there is no frost threat, Pfitzenmaier added.

Corn futures for December delivery rose five cents or 1.6 percent to US$3.275 per bushel on the CBOT. The price has dropped 6.3 percent this month as favourable weather boosted US crop prospects.

Corn is the largest US crop, valued at US$47.4 billion in 2008, government figures show.