BEIJING: Chicago soybeans rose on Monday to their highest level since May 2024, buoyed by further gains in crude oil prices amid the ongoing US-Israeli war with Iran.
The most-active soybean contract on the Chicago Board of Trade (CBOT) climbed 2.46percent to USD12.30-1/4 a bushel, as of 0148 GMT. Soyoil gained 4.73percent to 69.73 cents per pound, the highest since December 2022.
“US soybean prices have risen mainly due to stronger crude oil prices, which have driven up fuel costs, boosting vegetable oil prices and, in turn, raising soybean prices,” said Capital Jingdu Futures analyst Wan Chengzhi.
Increased logistics and production costs have also contributed to the price hike, rather than supply-demand fundamentals, he added. Oil prices surged about 20percent on Monday, hitting their highest since July 2022, as the expanding US-Israeli war with Iran led some major Middle Eastern oil producers to cut supplies, and on fears of prolonged disruption to shipping through the Strait of Hormuz chokepoint.
Meanwhile, Iran on Monday named Mojtaba Khamenei to succeed his father, Ali Khamenei, as the supreme leader, signalling that hardliners remain firmly in charge, as the week-old US-Israeli war with Iran pushed oil above USD100 a barrel.
Grain markets can track movements in crude oil, partly due to investment flows from commodity funds and to the use of crops such as soybeans and corn in biofuel production.
Corn added 2.5percent to USD4.72 a bushel, reaching a 10-month high, while wheat climbed 3.2percent to USD6.36-1/2 a bushel, hitting its highest since June 2024, as concerns over the Middle East conflict fuelled short-covering.
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