CBOT corn higher as crude oil rallies
CHICAGO, March 6 (Reuters) - Chicago Board of Trade corn futures turned higher on Friday following a rally in crude oil prices caused by the ongoing conflict in the Middle East.
Grain markets can track movements in crude oil, partly due to investment flows from commodity funds and also because crops like soybeans and corn are widely used for making biofuel.
U.S. crude oil futures climbed more than 10% on Friday, pulling closer to Brent as buyers sought available barrels, with Middle Eastern supply constrained by the effective closure of the Strait of Hormuz amid the expanding U.S.-Israeli conflict with Iran.
The war has also offset strength in the dollar =USD, which tends to curb Chicago prices as it makes U.S. crops more expensive for export. FRX/
Fertiliser producers in Russia, the world's largest exporter, will not be able to make up for a potential global shortfall linked to the U.S.-Iran conflict as their ability to boost supply is constrained, industry sources told Reuters on Friday.
New-crop corn futures hit contract highs.
May corn CK26 closed 7 cents higher to $4.60-1/2 per bushel.
