US corn futures climbed more than 1 percent to a two-week high on Thursday as investors exited short positions ahead of the US Department of Agriculture's monthly crop report due on Monday, when the government was expected to trim corn yields. Soyabean futures edged lower at the Chicago Board of Trade, consolidating after four straight sessions of gains, while US wheat futures were narrowly mixed in light-volume trading. USDA in its September supply and demand outlook is likely to reduce the average corn yield to 173.4 bushels per acre, down from 175.1 bpa on August 12 but still a record high, according to a Reuters analyst poll.
Analysts predicted USDA would boost US soyabean yields to a record of 49.2 bpa, up from 48.9 bpa in August. US Energy Information Administration data released at mid-morning on Wednesday showing sharply lower production of corn-based ethanol and decreased stocks of the biofuel was seen as bullish for ethanol prices but slightly bearish for corn. CBOT December corn was up 3-1/4 cents at $3.36-1/2 per bushel as of 11:40 am CDT (1640 GMT).
EIA in a weekly report said US ethanol output fell 25,000 barrels per day to 998,000 bpd, lowest since late-July. CBOT November soyabeans declined 2 cents to $9.73-1/2 per bushel and CBOT December wheat was up 1/4 cent to $4.03. Trading volumes in corn, soyabeans and wheat were light ahead of Monday's USDA data. A steep drop in corn open interest during Wednesday's session of higher prices suggested traders were exiting short positions rather than making new long bets, CME Group data showed.