Biofuels feedstock futures closed higher on Wednesday, with buyers propping up soybean and soybean oil prices.
The Chicago Board of Trade August soybean futures contract closed 1.11% higher at $12.33 per bushel, while the CBOT August soybean oil futures contract settled 1.59% higher at 75.48 cents per pound.
The Nymex August ethanol futures contract settled 0.39% lower on Tuesday at $1.92 per gallon.
Rhett Montgomery, a DTN analyst, said it was a risk-on day for many commodity markets, with the November soybean futures contract trading to the highest most active price in over two years.
"The buying was seen across all major commodities (and a new round of contract highs for several), influenced by a concerning weather outlook for the US Grain Belt through the first days of August, as well as a continued rise in outside energy futures with crude oil higher now in seven of the past eight sessions," Montgomery said.
On Wednesday, the Energy Information Administration reported that for the week ending July 17, US ethanol production averaged 1.09 million barrels per day, up from last week's 1.04 million b/d and above last year's 1.08 million b/d.
The four-week average output at 1.09 million b/d was below 1.08 million b/d a year ago.
Domestic ethanol inventories ended the week at 24.5 mmbbls, up from 24.4 mmbbls a week ago and from 24.4 mmbbls a year ago.