SINGAPORE, June 1 (Reuters) – Chicago soybeans bounced back on Monday, with higher oil prices underpinning the oilseed which is increasingly being used to make alternative fuels amid tight energy supplies following the Iran war.
Wheat prices were little changed on pressure from Northern Hemisphere harvest, while corn fell.
* The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.1% to $11.88-1/4 a bushel, as of 0013 GMT, having closed lower in the past session.
* Wheat was flat at $6.10-1/2 a bushel and corn lost 0.1% to $4.46-1/2 a bushel.
* Oil prices rose more than 2% in early trading on Monday after Israel ordered troops to move further into Lebanon in the battle with the Iranian-backed Hezbollah militant group, despite a ceasefire announced more than six weeks ago.
* The stepped-up fighting, coming just after the U.S. hosted Israeli-Lebanon peace talks in Washington on Friday, dimmed expectations that the U.S. and Iran could soon announce an extension to their ceasefire agreement.
* Soybean futures often track crude oil prices, it is commonly used as feedstocks for biofuels.
* Crop-friendly weather in the U.S. Midwest has pushed prices lower as market players await the U.S. Department of Agriculture’s weekly crop progress report on Monday.
* Wheat faced pressured from the upcoming Northern Hemisphere harvests. While the U.S. crop has suffered irreparable damage from drought, many other countries are on track for good crops. * Agriculture consultancy Sovecon raised on Wednesday its forecast for Russia’s 2026 wheat crop to 90.3 million metric tons from 89.7 million tons seen earlier, citing favourable “moisture reserves”. * However, India forecast an El Nino-weakened monsoon in 2026 that will bring the lowest rainfall in 11 years, fuelling concerns over crops, food prices and growth in the world’s fifth-largest economy, battling inflationary pressures from the Iran war.
* Oil prices rose more than 2% in early trading on Monday after Israel ordered troops to move further into Lebanon in the battle with the Iranian-backed Hezbollah militant group, despite a ceasefire announced more than six weeks ago.
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1400 US ISM Manufacturing PMI May (Reporting by Naveen Thukral; Editing by Rashmi Aich)
