Chicago soybeans fall on prospect of Middle East ceasefire
- The most-active soybean contract on the Chicago Board of Trade (CBOT) eased 0.2% to $11.52-3/4 a bushel
BEIJING: Chicago soybean futures fell on Wednesday, tracking losses in soyoil prices driven by lower crude oil on reports the US is seeking a month-long ceasefire in its war on Iran. Wheat and corn futures also edged lower.
The most-active soybean contract on the Chicago Board of Trade (CBOT) eased 0.2% to $11.52-3/4 a bushel as of 0325 GMT.
Soyoil fell 0.8% to 65.21 cents per pound. CBOT wheat declined 6% to $5.86-1/2 a bushel and corn shed 0.7% to $4.59-1/2 a bushel.
Oil prices dropped more than 5% on Wednesday on the prospect of a possible ceasefire easing supply disruptions from the key Middle East producing region after reports the US sent Iran a 15-point plan to end the war between them.
Brent crude futures fell $6.21, or 5.9%, to $98.28 a barrel by 0058 GMT, after declining to as low as $97.57.
US West Texas Intermediate (WTI) crude futures were down $4.67, or 5.1%, at $87.68 a barrel, after falling to as low as $86.72.
Grain and oilseed prices have broadly tracked fluctuations in crude oil during the conflict, reflecting the use of corn and soyoil in biofuels and investor interest in the crops as an inflation hedge.
In South America, Brazil’s soybean exports in March fell to a daily average of about 633,400 metric tons through the third week, down 17.9% from last year’s full-March average, data from the Brazilian government showed on Monday.
In Russia, one of the world’s top grain suppliers, wheat export prices remained near three-week highsreached during the rally sparked by the Iranian crisis.
Analysts have lifted their March shipment estimates amid accelerating exports.
Russia, which controls up to 40% of the global trade in ammonium nitrate, said on Tuesday it will stop exports of the fertilizer for one month until April 21 to ensure sufficient supply during the spring planting season.
The impact of the war on fertilizer markets - from disruptions to Gulf shipping to sharply higher gas prices - could lead to knock-on effects on crop production.
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