Chicago soybeans flat on favourable weather, soyoil supports

Chicago soybean futures were flat on Tuesday, torn between favourable U.S. crop weather and still strong soyoil prices despite a small fall after a sharp two-day rally, fuelled by surging crude oil and stronger U.S. biofuel blending mandates. The most-active soybean contract was unchanged at $10.69-3/4 per bushel, as of 1145 GMT. Soybeans had touched a one-month high and soyoil a 20-month high on Monday. Analysts said Iran-Israel tensions could add volatility to grain markets through energy price shocks. “At present eyes across all markets are on what is occurring in the Middle East,” said Andrew Whitelaw, agricultural consultant at Episode 3. “The region is a huge contributor to the energy markets, and these markets have a huge impact on grain pricing levels.” Soyoil dropped 0.3% at 54.95 cents per pound, as traders took profits, removing some support for soybeans. Soyoil is used to make biodiesel, and is therefore influenced by oil prices. These rose on Tuesday on rising ...