Chicago Board of Trade (CBOT) agricultural futures had a mixed closing on Wednesday, with corn prices dropping and wheat and soybean prices rising.
In particular, the most active corn contract for December delivery experienced a decrease of 3.75 cents, or 0.78 percent, settling at 4.75 U.S. dollars per bushel. On the other hand, the December wheat contract saw an increase of 5.5 cents, or 0.99 percent, settling at 5.6175 dollars per bushel. Additionally, the January soybean contract gained 4.5 cents, or 0.34 percent, settling at 13.15 dollars per bushel.
Looking ahead, the U.S. Department of Agriculture (USDA) is scheduled to release its November crop report on November 9th. At the moment, it is estimated that world soybean exports from the three primary shippers will reach record levels by November. However, the Chicago-based research company AgResource is growing concerned about the impact of South American weather on these projections.
In other news, the U.S. ethanol industry experienced a boost in production, with 309 million gallons of ethanol being produced last week. This marks an increase of 3 million gallons compared to the previous week and represents the largest weekly production total of the crop year. Additionally, U.S. ethanol stocks declined by 16 million gallons to reach 883 million gallons. It is worth noting that U.S. gasoline consumption remained steady at 8.7 million barrels a day, in line with levels from 2022.
The weather forecast for Brazil is also being closely watched as below normal rainfall is anticipated in Northern Brazil. In contrast, Southern Brazil is expected to experience heavy rainfall over the next 48 hours, potentially leading to additional flooding. The combination of below normal rainfall and above normal temperatures in Northern Brazil is causing concern among market participants.
