Ethanol’s discount to gasoline widened for the third time in four days on speculation that lower corn costs will prompt idled plants to resume production.
Wheat futures fell the most in more than a week after the U.S. Department of Agriculture said global inventories will be bigger than forecast last month. Soybeans also declined.
U.S. hard red winter wheat farmers in 2013 will abandon almost 24 percent of planted acreage, the most since 2002, after drought ravaged crop prospects in the southern Great Plains, Futures International LLC said.
Corn plunged the most since May, sparking a slump in soybeans and wheat, after the government said U.S. inventories were bigger than analysts forecast and that farmers will plant the most since 1936.
Ethanol gained against gasoline on speculation that lower imports and higher demand will drain stockpiles of the fuel alternative.
Wheat rose to the highest in almost five weeks on speculation that U.S. farmers will plant fewer acres with spring varieties than forecast due to cold, wet weather. Corn gained while soybeans fell.
Ethanol outpaced gasoline on speculation that low production rates will stem price declines, tightening its discount to the motor fuel to the lowest level in more than two weeks.
Ethanol weakened against gasoline as corn dropped to the lowest price in a week, reducing production costs for the biofuel.
Ethanol’s discount to gasoline widened from the lowest level in more than a month as gains for the motor fuel outpaced the biofuel.
Ethanol’s discount to gasoline widened for a seventh day after a government report showed record low production and rising stockpiles while inventories of the motor fuel dropped to a one-month low.
"We're looking for a slight increase in production and a build in stockpiles due to the lower corn prices."
- Terry Reilly on Apr 23, 2013