PARIS/BEIJING, March 19 (Reuters) - Chicago soybean, corn and wheat futures extended gains on Thursday as attacks on oil and gas facilities in the Middle East heightened concerns about war disrupting energy supplies.
Brent oil prices LCOc1 jumped above $119 a barrel after Iran attacked energy facilities across the Middle East following Israel's strike on its South Pars gas field. O/R
Soybean and corn can track to oil prices because both crops are widely used for biofuel feedstock, while grains as a whole have attracted investor demand amid the conflict.
However, large global supplies curbed prices, analysts said.
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 0.2% at $11.63-1/2 a bushel, as of 1205 GMT.
Soybeans have also been swayed by news regarding trade talks between Washington and Beijing and a planned revision of U.S. biofuel policy by the end of March.
"Soybeans ... remain at the mercy of Donald Trump's statements," Argus Media analysts said, noting a price plunge when the U.S. President delayed a visit to China and a rebound after news Trump will host a biofuel event next week. GRA/
China is a major soybean importer and the potential meeting had raised expectations of China buying more U.S. soybeans.
Rising energy and fertiliser costs could also influence farmers' planting decisions, as corn is typically a more input-intensive crop than soybeans.
S&P Global Energy said in a note it had slightly raised its forecast for U.S. corn planting due to price movements, but that fuel and fertiliser costs were a concern.
CBOT corn Cv1 climbed 0.9% to $4.67-1/2 a bushel while wheat Wv1 gained 1.2% to $6.11-1/4.
Wheat futures rose sharply on Wednesday, with concerns about dry weather in the U.S. Southern Plains adding further support.
Prices at 1205 GMT | |||
Last | Change | Pct Move | |
CBOT wheat Wv1 | 611.25 | 7.00 | 1.16 |
CBOT corn Cv1 | 467.50 | 4.25 | 0.92 |
CBOT soy Sv1 | 1163.50 | 1.75 | 0.15 |
Paris wheat BL2c2 | 218.00 | 2.75 | 1.28 |
Paris maize EMAc1 | 211.50 | 1.50 | 0.71 |
Paris rapeseed COMc1 | 505.50 | 3.00 | 0.60 |
WTI crude oil CLc1 | 97.72 | 1.40 | 1.45 |
Euro/dollar EUR= | 1.15 | 0.00 | 0.23 |
Most active contracts - Wheat, corn and soy U.S. cents/bushel, Paris futures in euros per metric ton | |||