Corn fell to a one-week low after the U.S. proposed a cut in the amount of renewable fuels refiners must blend with gasoline next year, reducing demand for crops used to produce biofuels. Soybeans were little changed.
Corn for March delivery lost as much as 0.8 percent to $4.2725 a bushel on the Chicago Board of Trade, matching the low for the most-active contract on Nov. 11. Futures were at $4.2825 by 11:47 a.m. in Singapore. On Nov. 8, the grain touched a 38-month low of $4.155 on a government forecast for a record-high harvest in the U.S., the world’s biggest producer.
In a draft rule released Nov. 15, the U.S. Environmental Protection Agency said it would require between 15 billion to 15.52 billion gallons of renewable fuels such as corn ethanol and biodiesel in 2014. That compares with 18.15 billion gallons set in a 2007 legislation, making it the first time the legal mandate would be cut. Farmers will produce 13.989 billion bushels of corn, the U.S. Department of Agriculture said Nov. 8.
“The proposal is negative for corn and soybean markets, however the proposal must now go through a number of hearings before it becomes law,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, wrote in a note today.
Soybeans for January delivery were at $12.8175 a bushel from $12.805 on Nov. 15 when it posted the biggest drop for a most-active contract since Sept. 30.
Wheat for March delivery climbed 0.6 percent to $6.5825 a bushel, extending last week’s 0.7 percent gain.
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