Ethanol mandate future sinks corn
Corn futures prices fell for the third straight day, pressured by concerns that U.S. regulators soon will ease requirements for ethanol usage in gasoline.
Wheat and soybeans prices also declined.
Corn weakened amid continued speculation that demand could decrease if the U.S. Environmental Protection Agency proposes a lower ethanol mandate. The EPA, whose proposal on ethanol rules could come this week, is expected to closely follow a draft leaked last month that suggested the minimum use of the corn-based biofuel would be cut to just over 13 billion gallons next year from this year's 13.8 billion. The agency's Renewable Fuel Standard, a law passed in 2007, now calls for 14.4 billion gallons of ethanol to be blended into gasoline next year.
Corn futures also were weighed down Thursday by the advancing harvest of what is expected to be a record U.S. crop. Farmers are speeding up somewhat the pace of sales of the grain in the Midwest, analysts said.
Corn for December delivery at the Chicago Board of Trade dropped 3 1/4 cents, or 0.8%, to $4.26 1/2 a bushel.
Wheat prices declined, reversing earlier gains, after Egypt selected rival suppliers over the U.S. in an international wheat tender. Egypt's General Authority for Supply Commodities, or GASC, bought 240,000 tons of Romanian and French wheat for shipment Dec. 1-15. Egypt is the world's largest importer of the grain.
Wheat for December delivery at CBOT fell 3/4 cent, or 0.1%, to $6.44 3/4 a bushel.
Soybean futures finished mostly lower, hurt by favorable weather forecasts for newly planted crops in Brazil and Argentina, the U.S.'s main rivals in soybean production.
CBOT soybeans for January delivery, the most actively traded contract, shed 1 1/2 cents, or 0.1%, to $13.13 1/2 a bushel.
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(END) Dow Jones Newswires
November 14, 2013 14:49 ET (19:49 GMT)
DJ U.S. Corn Prices Fall Amid Ethanol Concerns; Wheat, Soy Slip->copyright