CHICAGO, March 13 (Xinhua) -- Chicago agricultural commodities remained mixed Wednesday, with corn and soybean dropping and wheat rising.
The most active corn contract for May delivery lost 4 cents, or 0.56 percent, to close at 7.1025 dollars per bushel. May wheat rose 6.5 cents, or 0.92 percent, to settle at 7.1 dollars per bushel. May soybeans dropped 21.75 cents, or 1.48 percent, to close at 14.47 dollars per bushel.
Profit taking following a stronger dollar dampened corn Wednesday.
Meanwhile, decrease in ethanol production is negative to corn. Ethanol production for the week ending March 8 averaged 797,000 barrels per day, down one percent week on week and 10.7 percent year on year. Total ethanol production for the week was 5.6 million barrels. Corn used in last week's ethanol production is estimated at 83.7 million bushels, down from 84.5 million bushels the week prior; and cumulative corn used for ethanol production so far this crop year is 2.3 billion bushels.
By March 8, ethanol stocks were 18.7 million barrels, down 3.4 percent week on week and 15.2 percent year on year, supportive of corn in a long term.
Despite the selling pressure from corn and soybean markets as well as a stronger dollar, wheat managed to rise 0.92 percent on news that up to 15 trains of Chicago wheat are set to load out of the Eastern Corn Belt area for feed market in the southwest area.
Meanwhile, there are reports that the U.S. exporters were in talks with Iran last week, which possibly leads to U.S. selling 100,00 to 110,000 tonnes of Kansas City wheat to the latter. Iraq issued a 50,000-tonne wheat tender as well.
Nevertheless, profit taking and favorable weather conditions in the eastern Corn Belt area curbed the growth of wheat somehow.
It is also estimated that Germany will harvest 23.5 million tonnes of wheat in 2013, up from 22.3 million tonnes in 2012.
Soybean plunged Wednesday on reports that soybean stocks at Chinese ports are stable as fresh supplies from Brazil begin to reach their destinations, triggering worries over cancellation of U.S. soybean sales.
There are also market talks that Brazil has eliminated a tax credit for domestic soy oil, which if true, may cut Brazil soybean crush margin by as much as 20 dollars.
Meanwhile, new soybean crop is expected to hit the market by the end of this month in Argentina; Central Brazil will see good crop conditions in the next week.
A stronger dollar also dampened soybean prices.