Soybean futures rose to around $12.10 per bushel in early March, advancing for a third consecutive session and reaching their highest level since May 2024, supported by a surge in soybean oil. The oil jumped over 4% after Middle East tensions disrupted fuel supplies, increasing its use for biodiesel and raising concerns of tightening agricultural availability. Comments from Qatar’s energy minister added to market jitters, warning that Gulf producers could halt exports within weeks, potentially pushing crude oil toward $150 per barrel. Rising energy prices often ripple through agricultural markets, as crops like soybeans and corn are widely used in biofuel production and attract flows from commodity funds. Meanwhile, farmers in Brazil are harvesting a record soybean crop, which could temper China’s demand for US supplies, even as global tensions keep markets on edge.
