Soybean oil prices jump 4%, rising crude oil prices stimulate demand for biofuels
According to Bloomberg, soybean oil futures on the Chicago Mercantile Exchange rose more than 4% at the opening bell, as a sharp rise in energy prices caused by the conflict in the Middle East boosts demand for agricultural commodities used in biofuel production.
On Monday, the price of crude oil exceeded $100 per barrel as more and more major producers in the Middle East cut production and the Strait of Hormuz remains virtually closed. This is driving up prices for vegetable oils and grains used in agricultural fuels.
Wheat futures also continued to rise, after jumping on Friday by the most since 2024. The war is disrupting fertilizer supplies and raising transportation costs, supporting grain markets.
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