Chicago agricultural commodity futures were traded lower Wednesday, as weather concerns and bearish ethanol production report pressured the trading.
The most active corn contract for December delivery fell 5.25 cents, or 1.08 percent, to close at 4.8025 dollars per bushel. September wheat lost 0.5 cents, or 0.08 percent, to settle at 6. 5325 dollars per bushel. November soybeans fell 3.5 cents, or 0.28 percent, to close at 12.5675 dollars per bushel.
According to the Chicago Mercantile Exchange (CME), September corn contract led the market to the downside for the second session in a row as traders liquidate positions. Ethanol production report was considered bearish for old crop market direction with production for the week ending July 19th averaging 853,000 barrels per day, down 2.6 percent from last week.
Total ethanol production for the week was 5.97 million barrels. Corn used in last week's production is estimated at 89.6 million bushels, down from 91.9 million bushels the week prior.
The wheat market traded higher for most of the session but heavy midday selling in the corn market left wheat vulnerable to spillover pressure, which ultimately pushed wheat into lower.
It was announced that Egypt bought a total of 240,000 tonnes of wheat from Russia, Romania, and Ukraine (Black Sea Origins) for September shipment. For soybeans, there continues to be rumors that China are dumping old crop inventory reserves into their domestic market but no confirmation has been made.
Weather leans negative for the U.S. soybean market with cool and wet conditions over the next 14 days for the western Corn Belt while the east will dry down. The southeast and delta is set to see steady showers, which will help double crop acreage.