Corn Rises Amid Ethanol Lift as Wheat Climbs Before U.S. Exports

August 21st, 2014

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Category: Grains

Corn showing gains(Bloomberg) – Corn advanced following a report that showed rising production of ethanol, a fuel made from the grain, as wheat and soybeans rose ahead of the U.S. government’s weekly export sales report due later today.

U.S. ethanol output rose 0.6 percent to 937,000 barrels a day last week from 931,000 barrels a day in the prior period, the Energy Information Administration reported yesterday.

“Ethanol outpaces last week,” Paul Georgy, the president of Allendale Inc., wrote in a daily comment. “Cheaper corn prices are supporting excellent profit margins.”

Corn for December delivery rose 0.3 percent to $3.685 a bushel on the Chicago Board of Trade by 6:57 a.m.

Wheat for December delivery climbed 0.5 percent to $5.5275 a bushel in Chicago, after prices dropped to $5.45 yesterday, the lowest for a most-active contract since Aug. 14. Milling wheat for November delivery traded in Paris was little changed at 171 euros ($226.80) a metric ton.

Soybeans for delivery in November advanced 0.3 percent to $10.4125 a bushel, rebounding from $10.35 yesterday, the lowest level since September 2010.

Today’s weekly export sales report is expected to be “neutral to bullish” for soybeans, and neutral for wheat, Darin Newsom, a senior analyst at DTN, wrote in a market report.

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