Corn futures plunged the most since January after the U.S. said supplies left from last year’s crop climbed to the highest level since 2006.
Wheat futures rose to a two-month high after a government report showed improved U.S. sales to China and Brazil. Corn also advanced, while soybeans declined.
Corn posted the biggest gain in two weeks after the Federal Reserve announced a third round of stimulus measures to bolster the U.S. economy, improving prospects for grain demand as a drought erodes output.
Wheat futures fell for the third straight day on lingering concern that cheaper grain from Eastern Europe will erode demand for supplies from the U.S., the world’s top exporter.
Ethanol’s discount to gasoline tightened to the narrowest in more than two weeks on below- average inventories for this time of year.
Ethanol strengthened against gasoline for the first time in four days as the summer driving season neared while production costs rose.