* Corn gains more ground, soybean up for 2nd day
* Hope of higher U.S. ethanol, biodiesel output underpin
(Adds details, quotes)
By Naveen Thukral
SINGAPORE, March 1 Chicago corn rose for a third
consecutive session on Wednesday while soybeans gained more
ground, underpinned by expectations of higher U.S. biofuel
production, although gains were capped by confusion over the
The Chicago Board of Trade most-active corn contract
added 0.2 percent to $3.74-1/2 a bushel by 0426 GMT. The market
hit a high of $3.86-1/4 a bushel in the last session, the
strongest since June 30.
Soybeans rose 0.5 percent to $10.41-1/4 a bushel,
having firmed 1.3 percent on Tuesday, and wheat gained 0.1
percent to $4.44-1/4 a bushel.
Corn and soybeans drew support on Tuesday on reports U.S.
President Trump was preparing an executive order on ethanol, a
claim denied by the White House.
The head of the Renewable Fuels Association said that U.S.
President Donald Trump's administration would shift the onus on
combining biofuels with gasoline away from refiners, who had
long requested this change to the nation's biofuel programme.
"The corn market took particular interest in that because,
if realised, it could boost corn ethanol demand significantly,"
said Madeleine Donlan, an analyst at Commonwealth Bank of
"Confusion abounded though as conflicting responses to the
Changes to the programme could include a waiver to allow
greater volumes of ethanol to be blended into gasoline in the
summer, and support for a congressional tax credit for domestic
producers of soy-based biodiesel, a source said.
But the White House denied that President Trump planned to
issue an executive order to change the national biofuels
An all-time high Brazilian soybean production is also
Brazil's soybean crop in early 2017 is likely to reach a
record 105 million tonnes against 95.4 million tonnes last year,
helping boost Brazilian soybean exports, Hamburg-based oilseeds
analysts Oil World forecast on Tuesday.
Commodity funds were net buyers of CBOT corn, soybean and
wheat futures contracts on Tuesday, traders said.
Estimates for fund-buying in wheat ranged from 4,000 to
12,000 contracts, in corn from 20,000 to 30,000 contracts and in
soybeans from 9,000 to 25,000 contracts.
In news, Chinese trading house COFCO Group said on Tuesday
it had completed the takeover of Dutch grain trader Nidera.
Grains prices at 0426 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 444.25 0.50 +0.11% +1.25% 448.82 38
CBOT corn 374.50 0.75 +0.20% +3.96% 367.78 49
CBOT soy 1041.25 5.50 +0.53% +1.88% 1052.83 50
CBOT rice 9.57 $0.00 +0.00% -1.39% $9.86 28
WTI crude 54.09 $0.08 +0.15% +0.07% $53.19 61
Euro/dlr $1.055 -$0.002 -0.20% -0.29%
USD/AUD 0.7655 0.000 -0.03% -0.21%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
RSI 14, exponential
(Reporting by Colin Packham; Editing by Kenneth Maxwell and