“The ethanol numbers are huge,” said Jim Gerlach, president of brokerage A / C Trading. “Profit margins are just extraordinary right now. When margins are good, everything is good.”
Weekly ethanol production in the United States increased to 1,106 million barrels per day, according to the United States Energy Information Administration. The weekly total was the second-highest in history, behind only December 2017, at 1,108 million barrels per day.
Ethanol stocks fell to 19.925 million barrels despite increased production, the EIA said.
For his part, soft red winter wheat for December gained 0.9% (more than US $ 2) to close to US $ 280 per ton, also close to two-month highs. The market was supported by hopes of a rebound in export demand, as global stocks shrink.
European wheat futures had risen to their highest level since 2008 on Tuesday, before cutting some of their gains on Wednesday.
“Prices are being driven by tight supply – with low and still declining inventories in major exporting countries – and the mixed assessment of US winter wheat that has emerged now,” Commerzbank said.
In the meantime, soybeans for November rose 0.5% (US $ 0.64) and closed above US $ 455 per ton.
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