GRAINS: Soybeans rise as soyoil increases on Middle East tensions, but corn falls on favorable weather
Chicago soybean futures edged higher on Monday. This was supported by soyoil price gains after the U.S. attack on Iranian nuclear installations stoked fears about global crude oil supply.
As of 0301 GMT, the most active soybean contract increased 0.09% to $10.61-1/2 per bushel. Soyoil rose 1.14% to 55.09 Cents per Pound.
The U.S. launched a major attack on Iranian nuclear sites at the weekend. This escalation boosted soyoil prices, which are closely linked to biofuels.
Andrew Whitelaw said, "Fundamentally not much has changed from the end of last week," an agricultural consultant with Episode 3. "Speculators have reduced their net short position, which isn't surprising given the uncertainty surrounding the attacks by Israel and the U.S. on Iran."
Analysts and traders are watching closely for Iran's reaction to the U.S. strike.
The concern is now about the retaliation of Iran and its proxy forces in the region. Whitelaw said that if there were concerns about supply chains, the market could rally even more as crude oil prices rose.
The U.S. soy bean prices continue to be under pressure, due to a weak global demand and abundant global supplies.
Top buyer
Data showed that soybean imports from Brazil jumped 37.5% from a month earlier. Buyers snapped up South America’s bumper crop. Supplies from the United States rose by 28.3%.
After a strong rally last week, wheat traded at $5.83 per bushel. Harvest pressure capped gains, as an accelerating U.S. wheat harvest increased supply.
Corn fell 0.41%, to $4.27 a bushel. This is the lowest price since 2025. Favorable weather conditions in the U.S. Midwest have improved crop prospects and put pressure on prices.
Traders said that commodity funds sold futures contracts of Chicago Board of Trade corn, wheat, soybean oil, and soymeal on Friday, while buying soymeal. Reporting by Ella Cao, Lewis Jackson and Vijay Kishore; editing by Rashmi aich and Vijay Kishore
(source: Reuters)
