Dec. 3 (Bloomberg) -- Corn rose the most in almost three weeks on signs that demand for record supplies is improving, including from producers of biofuel. Wheat also gained, while soybeans declined.
U.S. ethanol output climbed to 927,000 barrels a day in the week ended Nov. 22, up 15 percent from a year earlier, government data show. The difference between the cost of corn and the price of a gallon of ethanol was 79 cents a gallon based on December contracts, up from 7 cents on Oct. 31. Prices for the grain, down 38 percent this year, reached a 38-month low on Nov. 8.
“Ethanol production has ramped up, and livestock producers are also making money,” Greg Grow, the director of agribusiness at Archer Financial Services Inc. in Chicago, said in a telephone interview. “Demand is improving with the lower prices.”
Corn futures for delivery in March rose 1.6 percent to close at $4.3125 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest gain since Nov. 13.
Prices fell earlier as China, the world’s second-biggest consumer, rejected U.S. export shipments containing an unauthorized, genetically modified variety of the grain. China’s corn imports may fall short of forecasts after the country found the unauthorized MIR162 variety in shipments, state-owned researcher Grain.gov.cn said in an e-mailed report.
Wheat futures for delivery in March added 1 percent to $6.6825 a bushel.
Egypt, the biggest wheat importer, purchased 60,000 metric tons of the Romanian wheat today in a tender. The country’s state-run buyer purchased one cargo of French wheat in its prior tender on Nov. 27, after taking mostly Romanian, Russian and Ukrainian supplies since the marketing year began July 1.
Chicago futures have fallen 14 percent this year as the U.S. government said bigger crops in Canada and Russia will boost global output to a record. Australia raised its crop outlook today to 26.2 million metric tons, the third-highest on record.
Soybean futures for delivery in January slid 0.1 percent to $13.1975 a bushel.
--With assistance from Whitney McFerron in London and William Bi in Beijing. Editors: Thomas Galatola, Millie Munshi