Chicago agricultural commodities rose across the board on Wednesday, with corn registering a sharp gain of 1.79 percent.
The most active corn contract for December delivery rose 8 cents, or 1.79 percent, to close at 4.5525 dollars per bushel. December wheat gained 1.25 cents, or 0.19 percent, to close at 6. 4275 dollars per bushel. November soybeans climbed 11.25 cents, or 0.92 percent, to close at 12.39 dollars per bushel.
December corn traded higher on Wednesday on strong ethanol market demand. Ethanol production for the week ending Aug. 9 averaged 857,000 barrels per day, up 0.50 percent week on week and 4.6 percent year on year. Total production for the week was 6 million barrels
The cumulative amount of corn used for ethanol production this crop year was 4.3 billion bushels. By Aug. 9, ethanol stocks were estimated at 16.4 million barrels, down 1.75 percent week on week and 11 percent year on year.
Market talk that a tropical storm from the Atlantic may shift east and head north to bring heavy rainfall to the Gulf of Mexico also supported corn, as the weather conditions may delay harvest progress in the region.
December wheat also managed to score a slight increase on Wednesday. Ending stocks of wheat on Kansas City market hit a 6- year low, supportive of wheat. But with favorable rainfall expected throughout central Nebraska, Kansas and Oklahoma, the growth of wheat prices has been cubed somehow.
November soybeans rose on Wednesday on strong export demand. The U.S. Department of Agriculture (USDA) reported that U.S. private exporters sold 110,000 tonnes of soybeans to China overnight for the 2013-2014 marketing year. World supply of soybeans is expected to be tight in September due to harvest delays in the United States. Meanwhile, market analysts still doubt the USDA's cut of its U.S. export demand forecast.
