The futures contracts of corn US USA rose 2.5% on Wednesday, reaching their highest level in more than two months, supported by signs of robust ethanol production that boosted demand for the grain, traders said.
The strength in corn prices has spread to the markets of Soy e wheat.
“You had huge numbers of ethanol,” said Jim Gerlach, president of brokerage A/C Trading. “Profit margins are good off the chart now. Whenever the margins are good, everything is good.”
Weekly US ethanol production rose to 1.106 million barrels a day, according to the US Energy Information Administration.
The weekly total was the second highest on record, second only to the December 2017 total of 1.108 million barrels per day.
On the Chicago Board of Trade, December corn futures advanced 13.75 cents at $5.5725 a bushel.
Prices peaked at $5,6325, the high for the most active contract on a continuous basis since August 19th.
Red winter soft wheat for December gained 7.50 cents to $7.5975 a bushel, as the market was also supported by hopes of a rebound in export demand for US supply as inventories swell. globals tighten.
Soybeans for November rose 1.25 cents to $12.3925 a bushel.