U.S. agricultural futures drop

   CHICAGO, April 2 -- Chicago Board of Trade (CBOT) agricultural futures dropped across the board on Wednesday as funds started April with net new selling and traders feared further economic/demand destruction.
   The most active corn contract for May delivery fell 6 cents, or 1.76 percent, to close at 3.3475 U.S. dollars per bushel. May wheat slipped 18.5 cents, or 3.25 percent, to close at 5.5025 dollars per bushel. May soybeans dropped 23.25 cents, or 2.62 percent, to settle at 8.6275 dollars per bushel.
   CBOT brokers estimate that funds have sold 9,300 contracts of soybeans, 4,800 contracts of wheat, and 4,200 contracts of corn.
   As the U.S. biofuel industry continues struggling amid deeply negative production margins, weekly U.S. ethanol production, stocks and usage data reflected the struggles of the industry.
   U.S. weekly ethanol production fell an unprecedented 17 percent to consume 85.5 million bushels of corn. At the same time, U.S. ethanol stocks swelled to a record. U.S. gasoline consumption was down nearly 30 percent year on year while U.S. crude oil stocks rose 13.8 million barrels and gasoline stocks were up 7.5 million barrels.
   With another 5-7 percent of the U.S. ethanol industry preparing to close, corn is under pressure.
   Soybean is likely to test 8.45-8.55 dollars with wheat in tow, market analysts said.
   Market analysts said that it is a new month and a new quarter, but the theme of "risk off" has not changed. No one can predict how long the stay-at-home orders as a result of COVID-19 will persist. They predict the market will remain bearish with traders waiting for bounces to sell. Xinhua