By Doug Cameron
U.S. soy complex futures climbed higher Wednesday on new biofuel mandates that also narrowed earlier losses in corn contracts.
Soyoil futures soared to their daily trading limit and ended up almost 7% higher, helping soybean futures reverse earlier losses to close up 0.4%, while corn dipped marginally and wheat slipped 1.4%.
The earlier-than-expected mandates from the Environmental Protection Agency bumped up advanced biofuels, including biodiesel, use by 100 million gallons, and traders said this would use as much as 275 million more pounds of vegetable oil.
The mandate would conventional ethanol, though traders said this would only make a small dent in big ending stocks, it nonetheless proved supportive for corn futures.
Fund buyers piled into soyoil contracts in the wake of the EPA announcement as the expanded mandate would help cut into ending stocks for the 2016/17 marketing year of 1.66 billion pounds projected by the U.S. Department of Agriculture.
However, traders also remain cautious about the fate of the biofuel mandate under the incoming administration.
The front-month soyoil contract ended up $2.37 at $36.85.
January soybeans added 4 ¿ cents at $10.34 ¿ a bushel.
Corn futures retreated from Tuesday's gain as the rising dollar--the WSJ index recently up another 0.7%--pressured potential export sales. Weekly USDA export data is due out Friday.
The December corn contract settled down ¿ cent at $3.50 ¿.
Wheat futures suffered a similar fate, with December Chicago futures ending down 5 ¿ cents at $4.01 ¿. and the December Kansas City contract down 1 cent at $4.15 ¿ a bushel.
(END) Dow Jones Newswires
November 23, 2016 15:28 ET (20:28 GMT)
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