Corn climbs over 1% on expectations of stronger ethanol demand

SYDNEY: US corn futures rose more than 1 per cent on Wednesday as expectations of stronger demand for ethanol were spurred by higher oil prices, though the global coronavirus pandemic provided a ceiling to gains.

FUNDAMENTALS
The most active corn futures on the Chicago Board Of Trade were up 1.2 per cent at $3.52 a bushel by 0120 GMT, having gained more than 1 per cent in the previous session.

The most active soybean futures were up 0.5 per cent at $8.92 a bushel, near the session high of $8.93 a bushel - the highest since March 6. Soybeans firmed 0.3 per cent on Tuesday.


The most active wheat futures were down 0.2 per cent to $5.60-1/4 a bushel, having closed down 0.2 per cent on Tuesday.

The US Department of Agriculture's crop reports showed improving winter wheat ratings in the US Plains, bolstering yield prospects.

Corn had been under sustained pressure this week after a slump in oil prices depressed demand for ethanol.

US ethanol producers are on track to shut about 2 billion gallons of annualized output by the end of this week because of a slump in demand for fuel, the head of the Renewable Fuels Association trade group said on Monday.