Soybean futures climbed on biofuel optimism Wednesday. Corn also gained while wheat was mixed.
Reports today said the U.S. Environmental Protection Agency is sending its proposal for new biofuel blending volume mandates to the White House, with an expected rule to be finalized by the end of March. An increase in the blending volume mandate is expected to lead to more demand for soybean oil as a biofuel feedstock. Hopes for more soybean export demand from China added to the upside. May beans were up 9 ¾ cents at $11.65, and November was 6 ½ cents higher at $11.27 ¾.
Wheat saw some light pressure from forecasts calling for rain for US winter wheat crops on the dry southern Plains. According to World Weather Inc., a more active weather pattern is expected to gradually evolve in the next two weeks with greater precipitation. May Chicago wheat fell 3 ½ cents to $5.69 ¾, and May Kansas City dropped 2 ¾ cents to $5.64 ¼. May Hard Red Spring eased a ½ cent to $5.87 ¼, while May Minneapolis managed a 1 ½-cent advance to $5.97.
Corn posted modest gains. EIA data from this morning showed a total of 1.113 million barrels per day of ethanol produced in the week to Feb. 20, down just 5,000 barrels from the week prior. May corn was up 3 ½ cents at $4.42, and December added 3 ¼ cents to $4.67.
