Crude oil rebound drives a recovery in soybeans and wheat, while improved U.S. weather pressures corn to a six-week low.

⑴ On Monday, CBOT soybean futures rose 0.2% to $11.89-1/2 per bushel, while wheat rose 0.4% to $6.12-3/4 per bushel, mainly boosted by oil prices climbing about 3% as Middle East conflict intensified again. During periods of conflict, the grain market follows crude oil fluctuations, partly reflecting biofuel demand for crops.⑵ However, CBOT corn futures fell 0.2% to $4.45-3/4 per bushel, hitting a new six-week low for the second consecutive trading day. Drying weather in the US Midwest eased concerns over planting delays, while rainfall in the Plains alleviated drought fears.⑶ An East 8 Zone trader said that if energy supplies remain tight, more grains and oilseeds will be diverted to biofuels. CM Navigator analysts pointed out that progress on a ceasefire remains unclear, and prices are recouping part of the war risk premium. The market is waiting for the US Department of Agriculture's weekly crop progress report to be released after the close on Monday. Northern Hemisphere harvest prospects and uncompetitive US soybean export prices are both limiting wheat's rally.