Chicago Close: Ethanol Production Lifts Corn Futures

Corn futures ended strongly higher on Wednesday, propelled higher by rising US ethanol production.

According to the US Energy Information Administration (EIA), American ethanol plants averaged 1.106 million barrels per day in output during the week that ended Oct. 22. That was the second largest weekly average production on record, behind only 1.108 million barrels in December of 2017. Despite that being an extra 10,000 barrels above last week, and the 4th consecutive weekly increase to output, stocks also declined 155,000 barrels during the week to 19.925 million. December and March corn each gained 13 ¾ cents to close at $5.57 ¼ and $5.66, respectively.

The gains in corn spilled over to support wheat, as did the continued tight supply situation for milling quality wheat. European wheat futures also rose to their highest level since 2008 on Wednesday. A lower-than-expected condition rating for the 2022 US winter wheat crop further underpinned the market. December Chicago wheat was up 7 ½ cents to $7.59 ¾, December Kansas City added 5 ½ cents to $7.82 ¾ and December Minneapolis gained a ½ cent to $10.22.

Soybeans followed wheat and corn higher. November closed up 1 ¼ cents at $12.39 ¼ and January was 2 ¼ cents higher at $12.49 ¾.

Source: DePutter Publishing Ltd.

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