Ethanol's future buoys corn; soybeans rise
Corn gained for the second time in three sessions on speculation that use of the grain to make ethanol won't fall amid strong producer margins even after the U.S. Environmental Protection Agency suggested lowering the amount required to be blended into gasoline.
Soybeans and wheat also gained.
Ethanol futures closed at $1.94 yesterday, up more than 20% since October, while corn prices earlier this week reached the lowest in more than three years. High ethanol prices and low corn futures equate to increased profit margins, meaning producers won't stop making the biofuel.
Corn futures for December delivery gained 6 cents, or 1.4%, to $4.23 a bushel on the Chicago Board of Trade.
Soybeans gained on signs of strong demand for supplies from the U.S., the world's second-biggest exporter of the oilseeds. Exporters sold 1.376 million metric tons of soybeans in the week that ended on Nov. 14, topping expectations by analysts, the U.S. Department of Agriculture said in a Thursday report.
Soybean futures for January delivery rose 17 3/4 cents, or 1.4%, to $12.91 1/2 a bushel on the CBOT.
Wheat futures for December delivery gained 1 1/2 cents, or 0.2%, to $6.48 3/4 a bushel in Chicago.
Wheat rose as the U.S. export report showed exporters sold 618,100 tons of wheat to overseas buyers in the week through Nov. 14, topping analyst forecasts. Japan bought 172,900 tons and South Korea purchased 80,500 tons.
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(END) Dow Jones Newswires
November 21, 2013 15:00 ET (20:00 GMT)
DJ Corn Gains as Ethanol Production May Not Decline; Soy Rises->copyright