Chicago Board of Trade (CBOT) grains futures settled mixed on Wednesday with soybean futures falling to one and half weeks low on an improved South American crop weather outlook while corn edged higher on export demand.

The most active corn contract for March delivery rose 3 cents, or 0.83 percent, to 3.6625 dollars per bushel. March wheat delivery fell 2.25 cents, or 0.53 percent, to 4.245 dollars per bushel. March soybeans dropped 3.25 cents, or 0.31 percent, to 10.5525 dollars per bushel.

Argentina’s soy belt is recovering from flooding this month. Conditions have been dry this week, but some forecasts called for rains to return in February. The country is the No. 3 global soy producer and the world’s top exporter of soyoil and soymeal.

CBOT soyoil futures fell on news that the U.S. Environmental Protection Agency would delay 30 regulations, including implementation of 2017 biofuels requirements announced in November.

Soyoil is the primary U.S. feedstock for biodiesel fuel, and the delay heightened uncertainty about the prospects for the federal biofuels mandate.

Corn futures ended higher as traders exited long soybean or short corn spreads, and amid demand from exporters and producers of ethanol fuel.

The U.S. Energy Information Administration reported weekly output of corn-based ethanol at 1.05 million barrels per day, down slightly from the prior week’s record-high level. Ethanol stockpiles rose.

CBOT floor brokers report that funds have sold 4,500 contracts of soybeans, and 2,000 contracts of wheat, while securing 3,000 contracts of corn.

In the outside markets, the Brent crude oil market is 0.54 dollar per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 161 points higher at 20,073.

Jason Roose, U.S. Commodities analyst, says that a number of slightly friendly fundamentals supported corn’s higher move.

“Slow farmer selling, the flash export sale of corn to Mexico and a potential reduction in Argentina corn crop are giving the corn a short covering bounce today,” Roose said. Enditem

Source: Xinhua/NewsGhana.com.gh

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