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GRAINS-Corn up for 3rd day on biofuel hopes, policy confusion caps gains
March 1, 2017 / 4:48 AM / 9 months ago

GRAINS-Corn up for 3rd day on biofuel hopes, policy confusion caps gains

    * 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 (Reuters) - 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
government policy.
    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
claims emerged."
    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
limiting gains. 
    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
Amrutha Gayathri)

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