Dry Weather in South America

Chicago grains further climbed on Tuesday, buoyed up by a sharply lower U.S. dollar and continuing dry weather in South America. Besides, strong gains in energy and equity market gave additional push from the outside. Corn even hiked to the highest level since November 17.

The most active corn contract for March delivery closed at 6.07 U.S. dollars per bushel, up six U.S cents, or one percent. March wheat gained eight cent, or 1.3 percent, to 6.0775 dollars per bushel. January soybean climbed 7.5 cents, or 0.66 percent, to 11.445 dollars per bushel.

Market analysts said that the grain market continued to find support from the hot and dry weather outlook in South America. Traders still see below normal rainfall for another week or more as a potential supportive force and will closely watch the weather event in the next few days.

Meanwhile, the dollar dropped sharply against the euro amid improvement in the European economy. The dollar index, which measures the value of dollar against six other currencies, Tuesday traded around 79.84, down 0.63 percent from the previous trading day. Besides, strong gains in energy and equity markets also helped support the gain market.

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