GRAINS-Corn, wheat drop as crude oil prices dive; soybeans end higher

By Karl Plume

CHICAGO, March 10 (Reuters) - U.S. corn and wheat futures fell for a second straight session on Tuesday as tumbling crude oil prices fueled profit-taking in grains after a surge to multi-month peaks a day earlier.

Soybeans shrugged off the crude oil pressure to end firmer, helped by intermarket spreading and as investors held out hope for a breakthrough in upcoming trade talks between U.S. President Donald Trump and Chinese President Xi Jinping.

A closely followed monthly crop supply and demand report from the U.S. Department of Agriculture, released at midmorning, garnered little reaction from the market as the USDA's changes from its prior-month forecasts were minimal.

Grain traders quickly turned their focus back to impacts from ongoing hostilities in the Middle East, U.S. corn and soybean spring planting intentions, and looming updates on biofuel policies.

"The grain and oilseed sector is back to focusing on supply and demand fundamentals following USDA's monthly WASDE crop report," said Arlan Suderman, chief commodities economist at StoneX. "This leaves the market waiting for the final RVO (biofuel blending) requirements from the EPA (Environmental Protection Agency), waiting for the March 31 stocks & acreage numbers, and waiting for a China trade deal."

Crude oil prices plunged more than 13% on Tuesday - after soaring to their highest levels since 2022 in the previous session - after Trump predicted the war with Iran could end soon, lowering expectations of prolonged supply disruptions. O/R

Grain markets have been riled by wild fluctuations in crude oil during the conflict, which triggered heavy commodity investment flows into grains and as crops like soybeans and corn are widely used to produce biofuel.

Chicago Board of Trade May corn futures CK26 settled 1-1/2 cents lower at $4.52-1/4 per bushel after hitting a 10-month high the previous day. May soybeans SK26 were 5-1/2 cents higher at $12.01-3/4 a bushel and CBOT May wheat WK26 was down 12-1/4 cents to $5.91 a bushel, having both reached their highest since mid-2024 on Monday.