CHICAGO, (PNA/Xinhua) — Chicago agricultural commodities rose across the board Wednesday.
The most active corn contract for December delivery rose 3.5 cents, or 0.75 percent, to close at 4.725 U.S. dollars per bushel. December wheat climbed 1.5 cents, or 0.23 percent, to close at 6. 48 dollars per bushel. November soybeans gained 3.25 cents, or 0. 24 percent, to close at 13.5825 dollars per bushel.
December corn rose on market expectations that the U.S. corn yield and production may decline in 2013-14. Demand for corn by ethanol production also supported corn by reporting a nice rebound from 2012-13 levels with 2013-14 estimated at 4.9 billion bushels, the third highest demand projection on record.
Ethanol production for the week ending Sept. 6 averaged 848,000 barrels per day, up 3.5 percent week on week and 3.9 percent year on year. Total ethanol production for the week, the first reporting week of the 2013-14 crop year, was 5.936 million barrels. Corn used in the week for ethanol production was estimated at 76. 32 million bushels. Stocks of ethanol by Sept. 6 were 16.3 million barrels, up 0.33 percent week on week but down 14.2 percent year on year.
December wheat traded slightly higher on short covering. A private satellite agency estimated that world wheat production would come at 702 million tonnes in 2013-14, down from the record U.S. Department of Agriculture (USDA) forecast of 705.38 million tonnes.
Meanwhile, the market is expecting a modest decline in wheat ending stocks from 172.98 million tonnes, a five-year low, in a report to be released by the USDA Thursday. Nevertheless, wheat production increases in France, Germany, the Black Sea and India curbed growth of corn prices. India aims to sell close to 2 million tonnes of wheat this year.
November soybean gained on possibly negative effect on soybean of poor weather in August, as August is the optimal time frame for soybean growth. There were reports of farmers harvesting soybeans in areas of Iowa and Illinois, but the yields were below year ago levels.
The market is expecting a decline in soybean yield and production in the upcoming USDA report. World soybean production is expected to climb to a record level of 281.71 million tonnes, but world ending stocks may decline from current record high of 44. 83 million tonnes, supportive of soybean.