Corn futures climbed more than 2% toward $4.60 per bushel, reaching its highest level since May 2024, as soaring crude prices amid the escalating US-Israeli war with Iran threatened to tighten supply across agricultural markets. Oil surged above $100 a barrel after several major Middle Eastern producers curtailed output and concerns mounted over prolonged disruptions to shipping through the Strait of Hormuz. The rally in energy markets raised production, freight, and fertilizer costs, lending support to grain prices, while stronger crude also boosted demand prospects for biofuels, which use crops such as corn as feedstock. Gains were further amplified by short-covering as traders exited bearish positions amid rising geopolitical risks. Despite the advance, ample global grain supplies continue to limit the scope for a sustained rally.
