GRAINS-Corn Steady after Hitting 8-Month High in Previous Session

March 1st, 2017

By:

Category: Grains

corn-450x299(Reuters) – U.S. corn held steady on Wednesday, though the grain struggled to generate the same kind of support seen in the previous session when prices hit an eight-month high on reports that U.S. President Trump was preparing an executive order to promote ethanol usage.

FUNDAMENTALS

The most active corn futures on the Chicago Board of Trade little changed at $3.73-1/2 a bushel, having gained 1.5 percent in the previous session when prices hit a high of $3.86-1/4 a bushel – the most since June 30, 2016.

The most active soybean futures rose 0.5 percent to $10.40-3/4 a bushel, having firmed 1.3 percent on Tuesday when prices hit $10.56-1/4 a bushel, the highest level since Feb. 16.

The most active wheat futures fell 0.1 percent to $4.43-1/4 a bushel, having closed up 1.1 percent on Tuesday.

Corn and soybeans drew support on Tuesday on reports U.S. President Trump was preparing an executive order on ethanol, a claim denied by the White House.

The head of the Renewable Fuels Association said that U.S. President Donald Trump’s administration would shift the onus on combining biofuels with gasoline away from refiners, who had long requested this change to the nation’s biofuel program.

Changes to the program could include a waiver to allow greater volumes of ethanol to be blended into gasoline in the summer, and support for a congressional tax credit for domestic producers of soy-based biodiesel, a source said.

MARKET NEWS

The dollar ticked higher on Wednesday as a handful of Federal Reserve policymakers boosted expectations for a March U.S. interest rate increase, just hours ahead of long-awaited speech by U.S. President Donald Trump.

U.S. crude lost more ground on Wednesday on rising U.S. oil output, although OPEC production cuts continued to offer support.

 

Add New Comment

Forgot password? or Register

You are commenting as a guest.