GRAINS-Chicago soy, wheat, corn rise on oil rally, Iran war fear

BEIJING/HAMBURG, March 9 (Reuters) - Chicago soybeans, wheat and corn rose on Monday, supported by surging crude oil prices and fear about the impact of the continuing U.S.-Israeli war with Iran.

Chicago Board of Trade most-active soybeans Sv1 rose 1.2% to $12.15-3/4 a bushel, at 1156 GMT after earlier hitting their highest since May 2024. Soyoil BOcv1 rose 2%, tracking crude oil rises.

"U.S. soybean prices have risen mainly due to stronger crude oil prices, which have driven up fuel costs," said Wan Chengzhi, analyst at Capital Jingdu Futures.

Oil prices surged to their highest since 2022 on Monday as fears of prolonged shipping disruptions gripped the market amid the U.S.-Israeli war with Iran.

Wheat Wv1 rose 0.7% to $6.21-1/2 a bushel after earlier hitting its highest since June 2024. Corn Cv1 rose 1.4% to $4.67 a bushel after earlier hitting 10-month highs.

"The war risk factor from the continuing conflict with Iran continues to support wheat, corn and soybean markets today as crude oil rises," said Matt Ammermann, commodity risk manager at StoneX. "Market fundamentals may be bearish, especially in soybeans and wheat, but fears about the unknown impact of the Iran war are overriding this and supporting prices."

"Iran is around the seventh largest corn importer in the world, and its corn import shipments cannot enter ports because of the conflict. Some of Iran’s corn shipments from the likes of Ukraine and Brazil are being cancelled and diverted to new buyers at price discounts."

But global grain and oilseed supplies restrained rises.

"There are still very large wheat supplies especially in the Black Sea region and also in the west EU seeking buyers," one German trader said. "Import demand is slack as buyers are delaying purchases if possible, hoping a truce in the Iran war could bring a sharp fall in prices."