Corn rises on expectations of strong US ethanol industry demand

Corn futures rose on Wednesday, buoyed by market expectations for a stronger demand from the US ethanol industry.

The USDA stated that the ethanol industry demand for corn will surge for the production of biofuel, and consequently agricultural commodity prices will rise.

US ethanol producers are on the cusp of supplying 2 billion gallons of biofuels by the end of this week.

Corn and other agricultural commodities rebounded on the Chicago Mercantile Exchange (CME) amid optimism over the US Congress' vote on a huge stimulus aid package.

The White House confirmed that an agreement has been reached with the US Congress on the $2 trillion stimulus package, which is the largest aid package in the US history, and it is aimed at easing the coronavirus economic impact.

This aid package is directed at providing the necessary support for US companies and industries that were impacted by the virus outbreak.

Corn May futures rose 0.6% to settle at $3.48 per bushel, after hitting a day high of $3.52 and a low of $3.45.