Wheat grain futures are flirting with six-week highs as concerns over EU crop yields intensify. November delivery contracts show increased open interest, indicating that commercial hedgers expect elevated prices through Q Below the Threshold: Average daily production of ethanol in the U.S. fell from the prior week to drop below the 1 million barrels a day threshold for the first time since May. The EIA said that average daily production of ethanol through the week ended Sept. 26 was 995,000 barrels a day. That's off by 29,000 barrels a day from last week's figure, and is a bigger decrease than expected by analysts surveyed by Dow Jones. Inventories also fell and declined by more than analysts expected, totaling 22.76 million barrels for the week, down 704,000 barrels from last week. It may seem “doom and gloom” but it's easy to be bearish when prices are pressing new lows — especially coming off the latest round of USDA data this week. The stocks and production numbers didn’t offer a clear bullish spark and reinforces the bearish narrative traders already want to believe. Headlines highlight weakness, charts look heavy and every bounce feels like a selling opportunity. But that same psychology often sets the stage for turning points. The market doesn’t bottom because everyone feels good about it — it bottoms when the last of the weak hands throw in the towel. For producers, that means being careful not to get swept up in the noise. Cheap puts and disciplined offers let you stay defensive without locking yourself out of a recovery. Corn grain futures edged higher to $4.87/bushel after USDA’s latest report pointed to tighter ending stocks. Traders are watching ethanol production data closely, as rising demand from biofuels could add upside pressure in the coming weeks.