Grains mixed; Corn re-approaches 4-year low on U.S. ethanol proposal
On the Chicago Mercantile Exchange, corn futures for December delivery traded at USD4.1738 a bushel, down 0.95%. Corn prices fell to a session low of USD4.1620 a bushel earlier, the weakest level since November 8.
The December corn contract ended 1.06% lower on Friday to settle at USD4.2200 a bushel.
Corn prices extended heavy losses from the previous session after the EPA proposed to reduce the amount of ethanol in the nation's gasoline supply, sparking concerns over a slowdown in demand.
Based on the new proposal, 12.7 billion to 13.2 billion gallons of corn ethanol would be used in the nation's fuel mix, the lowest level since 2011.
One bushel of corn is currently used to make about 2.8 gallons of ethanol.
Corn prices have been on a downward trend in recent months amid expectations this year's corn harvest in the U.S. will be the largest on record. Prices of the grain slumped to a four-year low of USD4.1540 a bushel on November 8.
Elsewhere on the CBOT, soybeans futures for January delivery traded at USD12.8025 a bushel, little changed. Prices of the oilseed traded in a range between USD12.7675 a bushel, the daily low and a session high of USD12.8338 a bushel.
The January soy contract tumbled 2.51% on Friday to end at USD12.8040 a bushel after agricultural meteorologists predicted mostly favorable weather across key soy-growing regions in Brazil, which was likely to boost crop prospects in the world's biggest exporter of the oilseeds.
Meanwhile, wheat for December delivery traded at USD6.4588 a bushel, 0.15% higher. Wheat prices traded in a range between USD6.4538 a bushel, the daily low and a session high of USD6.4963 a bushel.
The December contract slumped to USD6.4260 a bushel on Friday, the lowest since September 18, before settling at USD6.4440 a bushel, down 0.04%.
Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.