(July 8): Chicago soybean oil futures climbed to a three-week high after fresh US military strikes on Iran sparked a rally in crude prices, raising the prospect of greater demand for biofuel feedstocks.
The most-active soybean oil contract rose by as much as 2.6% on Wednesday, the fifth day of gains and the biggest one-day jump in more than seven weeks.
US President Donald Trump sent crude oil prices higher, saying the tentative ceasefire with Iran is over. Earlier, the US targeted more than 80 Iranian sites in response to a series of attacks on ships in the Strait of Hormuz.
As a major biofuel feedstock, soybean oil prices are often tied to movements in petroleum. When crude prices rise, alternative fuels become more attractive to buyers.
The movements in soybean oil prices were partly linked to growing geopolitical tensions, said Kang Wei Cheang, an agricultural broker at StoneX. High US biofuel-blending mandates were also creating strong demand for oil-seed feedstocks more broadly, he said.
See also: China buys more US soybeans as key agricultural trade ramps up
Prices:
- Soybean oil rose by 2% to 68.61 cents a pound.
- Corn fell slightly, while soybeans and wheat gained.
Uploaded by Arion Yeow
