PARIS/BEIJING: Chicago soybean and corn futures extended gains on Thursday to reach one-month highs, spurred by a jump in crude oil following US sanctions on Russia’s two biggest oil firms along with hopes for progress in US-Chinese trade talks.
Wheat also edged up, with news of an import purchase by Algeria lending some support.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.4percent at USD10.38-1/2 per bushel, after earlier hitting its highest since September 19. CBOT corn added 0.3percent to USD4.24-1/4 a bushel after touching its highest since September 26.
Crude oil surged 5percent after the US imposed sanctions on major Russian suppliers Rosneft ROSN.MM and Lukoil LKOH.MM over the Ukraine war. Soybeans and corn can react to oil prices as the crops are widely processed for use in biofuel.
“Grains and beans are supported by the strength of the crude market,” said Andrey Sizov, head of consultancy Sovecon. “Things are heating up around Russia.”
Together with ongoing military strikes, including Ukraine’s targetting of a Russian chemical plant using Western Storm Shadow missiles, the sanctions have dimmed immediate prospects for a ceasefire in the 3-1/2 year conflict.
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