By Kirk Maltais
-- Wheat for December delivery rose 2% to $7.00 3/4 a bushel on the Chicago Board of Trade Tuesday in reaction to Statistics Canada lowering its expectations for Canadian wheat production.
-- Corn for December delivery rose 1.4% to $5.20 1/4 a bushel.
-- Soybeans for November delivery fell 0.2% to $12.82 1/2 a bushel.
Downward Revision: A new report from Statistics Canada, the data-gathering arm of the Canadian government, is cutting its forecast for Canadian wheat production. The agency now forecasts production at 21.7 million tons for 2021, which is down from previous estimates for the year and last year's harvest of 35.2 million tons.
The report is bullish for wheat futures, said Arlan Suderman of StoneX.
Rating Reversed: CBOT corn futures rose Tuesday, which according to AgriTel is a reaction to the crop rating published by the USDA late Monday, which was down to 58% of good to excellent from 59% last week. Soybean conditions, meanwhile, were unchanged at 57% this week.
The USDA's report also showed the beginnings of U.S. harvesting, with corn harvest 4% complete, down from 5% at this time last year.
Extended Streak: Analysts surveyed by Dow Jones this week say that they largely expect inventories of ethanol in the U.S. to extend their streak of declines. They forecast inventories to land as low as 20.09 million barrels, versus 20.39 million barrels reported last week by the EIA. Should the EIA report another drop in inventories, it will be the seventh consecutive week that ethanol inventories have fallen.
Meanwhile, daily ethanol production in the U.S. is expected to stay level in this week's report. Analysts forecast a range of 913,000 barrels per day to 933,000 barrels per day, versus 923,000 barrels per day reported last week.
Leaving on a Jet Plane: Demand for sustainable and renewable fuel for the aviation industry is expected to multiply by over 30 times in the next four years, said price-reporting agency Fastmarkets. Global demand for sustainable aviation fuel is expected to rise from 80,000 metric tons now to almost three million tons -- or one billion gallons -- by 2025, according to Fastmarkets. To meet that demand, an overall investment of $7 billion is needed among producers, says the agency.
Last week, the Biden administration introduced plans for a tax credit for sustainable aviation fuel in an effort to meet 2030 climate goals.
-- The EIA is scheduled to release its weekly ethanol production and stocks report at 10:30 a.m. EDT Wednesday.
-- The USDA is due to release its weekly export sales report at 8:30 a.m. EDT Thursday.
-- The CFTC is scheduled to release its weekly commitments of traders report at 3:30 p.m. EDT Friday.
Write to Kirk Maltais at email@example.com
(END) Dow Jones Newswires