The most active corn contract for March delivery rose 2.25 cents, or 0.48 percent, to settle at 4.7575 U.S. dollars per bushel. March wheat soared 13.75 cents, or 2.4 percent, to settle at 5.8575 dollars per bushel. January soybean climbed 0.5 cents, or 0.04 percent, to settle at 13.47 dollars per bushel.
Wheat paced the recovery on continued short covering. U.S. FOB corn is now the world's most reliable supply.
The short side of global corn and wheat markets has become overly crowded as South American corn production is highly uncertain. Soybean and soyoil have the best fundamental story amid lofty crush margins and expanding biofuel production. Chicago-based research company AgResource holds that potential Brazilian soybean yield loss will add to upside potential in December-January.
U.S. Energy Information Administration ethanol data released Wednesday showed U.S. gasoline consumption in the week ending Nov. 24 totaled 8.21 million barrels per day, as against 8.48 million barrels in the prior week and down 1 percent from the same week in 2022. Commercial U.S. crude stocks last Friday totaled 449.7 million barrels, as against 448.1 million barrels in the previous week and up 7 percent from last year. U.S. strategic crude reserve was up 400,000 barrels week over week.
Ethanol production was 297 million barrels, down 3 million barrels from the previous week and a 7-week low.
Better rain chances are forecast to expand into Central Brazil beginning Dec. 4-5, and to blanket much of the driest regions of Mato Grosso and Goias. A moderation of temperatures in Brazil occurs this weekend. More unwanted rainfall impacts RGDS and Parana in South Brazil. Argentine weather stays favorable, with soaking rainfall due in the next 48 hours.
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