CBOT soybeans rally to 21-month peak on surging crude oil
CHICAGO, March 12 (Reuters) - Chicago Board of Trade soybean futures rallied to the highest level since May 2024 as crude oil extended gains as investors wrestled with disruptions caused by the U.S.-Israel war on Iran.
Oil prices rose about 8% on Thursday as Iran stepped up attacks on oil and transport facilities across the Middle East, and the country's supreme leader said the closure of the vital Strait of Hormuz should continue.
Higher crude prices can support soybeans as soyoil is widely used to produce biodiesel fuel. Soy processing margins have also swelled as the price of soyoil, a key biodiesel feedstock, has firmed.
Expectations that the U.S. government may soon release final biofuel blending rules were also supportive. Proposed rules suggest demand for soyoil to make crop-based diesel fuel would rise.
Investors are adjusting positions in the hope that there is a breakthrough in upcoming trade talks between the United States and top soy importer China.
The U.S. Department of Agriculture reported net U.S. soybean export sales in the week ended on March 5 at 466,258 metric tons, in line with analyst estimates and the largest in three weeks.
CBOT May soybeans SK26 settled 13-1/4 cents higher at $12.28-1/4 per bushel after notching a contract high of $12.38-3/4. It was the highest level for a most-active contract Sv1 since May 28, 2024.
Most soybean contracts posted new life-of-contract highs during the session.
CBOT May soyoil BOK26 ended up 0.26 cent to finish at 67.42 cents per pound.
CBOT May soymeal SMK26 rose $4.80 to end at $320.20 per short ton.
