Soybean and corn futures on the Chicago Board of Trade closed higher, tracking a sharp rise in crude oil prices, while wheat futures fell on profit-taking after prices hit a two-year high. December corn futures rose 2.75 cents, or 0.57 percent, to settle at 4.8750 dollars per bushel. November soybean futures gained 4.75 cents, or 0.38 percent, to close at 12.4375 dollars per bushel. September wheat futures dropped 9.50 cents, or 1.35 percent, to end at 6.9625 dollars per bushel. Analysts at Hightower Report noted that wheat prices eased on profit-taking after being supported by escalating Black Sea tensions, as shipowners temporarily halted vessel calls at Ukrainian agricultural export ports following increased Russian attacks on ports and commercial ships. Additionally, expectations of lower wheat production provided further support after a crop tour estimated hard red spring wheat yields in southern North Dakota at 46.0 bushels per acre, down 8 percent from last year. The surge in crude oil prices lent support to soybeans and corn, as soybean oil is used to produce biodiesel, while rising Chinese import demand and concerns over a heatwave in western US corn-growing areas were additional positive factors.
Crude oil surge boosts biodiesel demand, supporting corn prices.
Crude oil surge boosts biodiesel demand from soybean oil, plus rising Chinese import demand.
Profit-taking after hitting two-year high, despite supportive fundamentals.