CBOT corn higher after new biofuel guidance

CHICAGO, Feb 3 (Reuters) - Chicago Board of Trade corn futures regained ground on Tuesday after the U.S. Department of the Treasury released updated guidance on biofuel tax credits, analysts said.

• Market players are continuing to parse through the Treasury's updated guidance on the 45Z Clean Fuel Production tax credit.

• The U.S. Treasury Department on Tuesday issued a proposed rule governing how biofuel makers can access a $1-per-gallon tax credit for low-carbon transportation fuels, including aviation fuel.

• Changes included allowing for low-carbon fuel produced with feedstocks grown in Canada and Mexico as well as tweaks to the methodology for calculating a feedstock's land use intensity.

• The long-awaited guidance helped push corn futures higher as the grain is used to produce ethanol, another major biofuel.

• Planting of Brazil's second corn crop reached 13% of the estimated area, compared with 9% a year earlier, consultancy AgRural said on Monday. The first corn harvest hit 10%, lagging behind the 14% seen a year earlier.

• CBOT March corn CH26 closed 2-3/4 cents higher at $4.28-1/2 per bushel.