Chicago agricultural commodities tumbled across the board on Wednesday, with corn and wheat losing more than 2 percent.
The most active corn contract for March delivery dropped 9 cents, or 2.11 percent, at 4.17 U.S. dollars per bushel. March wheat lost 13.75 cents, or 2.28 percent, to 5.8875 dollars per bushel. March soybeans shed 6.75 cents, or 0.53 percent, to 12. 6925 dollars per bushel.
Expectations for increasing corn production and larger carryover weighed on March corn, and a weekly report showing a large increase in ethanol supplies also added pressure to corn prices. U.S. ethanol inventory has built up in the past four weeks, and the trend may continue well into early spring.
March wheat closed sharply lower on a stronger dollar Wednesday. However, as weather warms up, the worry over the impact of cold temperatures on winter wheat, seems to vanish.
March soybean also dipped Wednesday after the U.S. Department of Agriculture announced a sale of 115,600 tonnes of U.S. soybeans to China.