Crop Prices Jump as War Snarls Trade and Risks Tightening Supply

Palm and soybean oil prices surged and wheat hovered near the highest in almost two years as the war in the Middle East drove up energy and fertilizer costs and threatened to tighten supplies across agricultural markets.

Disruptions to crude oil supplies wrought by the conflict are boosting the appeal of crop-based biofuels, lifting demand for vegetable oils and corn. The effective closure of the Strait of Hormuz — a major conduit for the fertilizer trade — has also sent crop nutrient prices soaring as farmers rush to secure supplies. At the same time, wartime food security concerns may prompt ...