US corn futures rose about 3 percent on Tuesday and soyaoil futures jumped nearly 6 percent on expectations that changes to the US renewable fuels policy would boost demand for corn-based ethanol and soya biodiesel, traders said. Wheat and soyabean futures were also higher. Investment by commodity funds at the end of the month and ahead of the US planting season added support, analysts said.
As of 11:07 am CST (1707 GMT), Chicago Board of Trade May corn was up 11 cents at $3.79-1/4 per bushel after reaching $3.86-1/4, its highest level since February 16. CBOT May soyabeans were up 27 cents at $10.49 a bushel while May soyaoil was up 1.91 cents at 34.54 cents per lb after reaching 34.74 cents, its highest price since February 13.
CBOT May wheat was up 7-1/4 cents at $4.46 a bushel. Corn climbed after the head of the Renewable Fuels Association (RFA) said that US President Donald Trump's administration would lift the responsibility for fuel blending off refiners, who had long requested this change to the nation's biofuel program. Changes could also include a waiver allowing a higher blend of ethanol to be sold in US gasoline year-round, and support for a tax credit for producers of soya-based biodiesel, a source told Reuters. Others said the strength across the grains complex had to do with commodity funds banking on weather uncertainty as the start of the US growing season approaches.
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