GRAINS-Chicago soyoil futures hit 18-month high on biofuel mandate, Mideast tensions
BEIJING, June 16 (Reuters) - Chicago soyoil futures surged to their highest level in nearly 18 months, buoyed by higher-than-expected biofuel blending proposals and a rally in crude oil prices amid escalating battle between Israel and Iran.
Soybeans edged higher on rising soyoil prices, though gains were limited by weak demand and tariff uncertainties. Meanwhile, wheat and corn futures retreated.
FUNDAMENTALS
The most-active soyoil contract BOcv1 on the Chicago Board of Trade jumped 4.78% at 53.03 cents per pound, as of 0034 GMT, its highest since December 20, 2023.
Soybean Sv1 inched up 0.02% to $10.70 per bushel. Wheat Wv1 dipped 0.55% to $5.40-6/8 a bushel, while corn Cv1 dropped 0.34% to $4.43 a bushel.
Soyoil, a key feedstock for biodiesel fuel, found support after the U.S. Environmental Protection Agency proposed last Friday to increase the amount of biofuels that oil refiners must blend into the nation's fuel mix over the next two years. The proposal exceeded market expectations.
Oil prices extended Friday's rally, as renewed strikes by Israel and Iran over the weekend increased concerns that the battle could widen across the region and significantly disrupt oil exports from the Middle East.
Higher oil prices tend to lift soyoil by making biodiesel more attractive.
Corn was pressured by benign weather forecasts for crop development in the U.S. Corn Belt. Traders are awaiting updated weekly crop ratings due later on Monday from the U.S. Department of Agriculture.
Wheat eased on seasonal pressure as the Northern Hemisphere's winter wheat harvest gets underway.
On the Chicago Board of Trade, commodity funds were net buyers of soyoil, soybean, wheat and corn futures contracts on Friday and net sellers of soymeal futures, traders said. COMFUND/CBT
DATA/EVENTS (GMT)
0200 China Urban Investment (YTD) YY May
0200 China Retail Sales YY May
0200 China CPI MM NSA May
0630 India WPI Inflation YY May
1100 EU Reserve Assets Total May
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