Crude oil rebound boosts agricultural products, US soybeans return above $12, soybean oil surges 3.2% leading grain gains

⑴ Chicago soybean futures rose 1.2% on Wednesday to $12.16 per bushel, rebounding alongside crude oil prices from yesterday's sharp decline. Soybean oil, as the main raw material for biodiesel, is highly correlated with crude oil prices and surged 3.2% on the day to 67.73 cents per pound, becoming the leading commodity. ⑵ Geopolitical risks dominate market sentiment. Although US President Trump predicted that the war may end soon, triggering a sharp drop in oil prices on Tuesday, Iran's move to mine the strait shows that the situation is far from calming down. Analysts pointed out that high energy prices continue to support oilseeds, while optimistic expectations for the resumption of fuel and fertilizer transportation are being shattered by reality. ⑶ Corn and wheat also strengthened. Chicago corn futures rose 1.2% to $4.57-1/2 per bushel, while wheat rose 1.4% to $5.99-1/4 per bushel. Corn is also widely used for biofuel, and wheat remains sensitive to oil price fluctuations due to geopolitical risks and commodity fund flows. The escalation of the Middle East situation has temporarily shifted the market's focus away from concerns about ample global grain supply, pushing Chicago futures to multi-year highs on Monday.