GRAINS-Chicago soy, wheat, corn rise on oil rally, Middle East tensions

BEIJING, March 9 (Reuters) - Chicago soybeans rose on Monday to their highest level since May 2024, buoyed by further gains in crude oil prices amid the ongoing U.S.-Israeli war with Iran.

Wheat also saw sharp gains, reaching its highest level since June 2024, as fears of an escalating Middle East conflict fuelled short-covering. Corn prices hit a 10-month high.

FUNDAMENTALS

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 rose 2.08% to $12.25-3/4 a bushel, as of 0101 GMT. Soyoil BOcv1 gained 4.01% to 69.26 cents per pound.

Wheat Wv1 climbed 3.12% to $6.36 a bushel, while corn Cv1 added 2.01% to $4.69-3/4 a bushel.

Oil prices surged about 20% in early trade on Monday, hitting their highest since July 2022, as the expanding U.S.-Israeli war with Iran fuelled fears of tighter supply and prolonged disruptions to shipments through the Strait of Hormuz.O/R

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.

Despite the price surge, ample global grain and oilseed supplies continue to limit the upside in prices.

Ukraine's 2026 grain harvest may decrease by 4% to 58.6 million metric tons from 61.1 million in 2025, mostly due to a smaller wheat output, analysts at APK-Inform said on Sunday.

Brazilian farmers had harvested 47.4% of their 2025/26 soybean crop as of Friday, agribusiness consultancy Patria AgroNegocios said on Saturday, roughly in line with the average 47.8% of the last five years.

MARKET NEWS

Share futures slid in Asia on Monday as the inflationary pulse from surging oil prices threatened to raise living costs, and perhaps interest rates, across the globe, while an investor hunger for liquidity kept the U.S. dollar in demand. MKTS/GLOB

DATA/EVENTS (GMT)

0130 China PPI YY Feb

0130 China CPI YY Feb

0700 Germany Industrial Orders MM Jan

0700 Germany Manufacturing O/P Cur Price SA Jan

0700 Germany Consumer Goods SA Jan

0700 Germany Industrial Output MM Jan

0700 Germany Industrial Production YY SA Jan