CBOT Corn Rises on Higher Crude Oil Prices
CBOT Corn Futures Rise on Higher Oil Prices
Chicago Board of Trade corn futures gained on Thursday as investor doubts over the prospects for a deal to reopen the Strait of Hormuz drove oil prices higher, supporting crops used as feedstock to make biofuel.
Oil Price Volatility Impacts Corn
Oil prices have been volatile in recent sessions as traders parse conflicting signals on the possibility of an end to the three-month Iran war and a potential re-opening of the Strait of Hormuz. Traffic through the maritime chokepoint remains at a small fraction of the pre-war level.
Chicago corn futures often track oil prices, as the grain is used as a feedstock for biodiesel.
Fertilizer Prices and Farmer Squeeze
The U.S. Federal Trade Commission said on Thursday it has been investigating increased fertilizer prices following a spike due to the war in Iran. Soaring prices for fertilizer and fuel due to the conflict have pinched farmers as they plant crops such as corn and grapple with a resurgent drought in parts of the U.S. Plains. Some growers are facing a fourth straight year of shrinking margins.
CBOT July corn (CN26) ended 3-1/4 cents higher to $4.55-3/4 per bushel.
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