Corn futures rebounded from the lowest in almost 10 months after a government report showed increased U.S. production of grain-based ethanol in the U.S. Soybeans and wheat fell.
Ethanol production climbed 2.5 percent to 853,000 barrels a day, pushing the three-week average to the highest since July. Companies including Valero Energy Corp., Abengoa SA and Poet LLC have resumed output at plants that were idled after drought in the Midwest cut supplies of corn. The grain has dropped 11 percent this year on speculation that U.S. and global production will rebound.
“We have more ethanol producers resuming operations and buying more corn,” Don Roose, the president of U.S. Commodity Inc. in West Des Moines, Iowa, said in a telephone interview. “The lower corn price definitely helped.”
Corn futures for delivery in July gained 0.7 percent to close at $6.1825 a bushel at 1:15 p.m. on the Chicago Board of Trade after touching $6.10, the lowest since June 26 for a most-active contract.
Soybean prices slid on speculation that wet, cold weather delaying planting in the northern Midwest and Great Plains will lead to farmers switching from corn and wheat to sow more of the oilseed, Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis, said in a telephone interview.
Soybean futures for delivery in July fell 1 percent to $13.4525 a bushel on the CBOT. Earlier, the price touched $13.41, the lowest since June 18.
Wheat futures for July delivery declined 0.5 percent to $6.92 a bushel in Chicago, capping the first three-session drop since Feb. 25.