GRAINS-Chicago soy choppy, grains lower as investors weigh US-Iran war
By Heather Schlitz
CHICAGO, March 23 (Reuters) - Chicago soybean futures flitted between positive and negative territory on Monday as U.S. President Donald Trump's announcement of a delay to possible strikes against Iranian power plants roiled financial markets.
Trump's comments, which also referred to productive talks with Iran, sent oil prices tumbling as investors saw a sign of de-escalation in the three-week U.S.-Israeli war with Iran that has disrupted global energy supply. O/R
However, Iranian denials of talks with Washington curbed the slide in crude and led grain prices to pare losses.
"I don't think the market's feeling like it's the end of the war yet," said Randy Place, analyst at Hightower Report.
Lower crude oil prices provided continuous pressure on corn prices and a ceiling for soybean futures.
The most-active soybean contract on the Chicago Board of Trade Sv1 was up 1-1/4 cents at $11.67-3/4 per bushel as of 10:30 a.m. (1530 GMT).
Grains are sensitive to crude oil because of the widespread use of corn and soyoil in biofuels and, more particularly, as investors have seen the crops as an inflation hedge during the Iran crisis.
Though corn came under pressure from crude oil prices, losses were limited by bullish fundamentals, including strong export demand and high ethanol margins.
Wheat also ticked lower after Trump's comments on a strike postponement, which eased fears of wheat shortages in Middle Eastern and North African countries.
"That pulls some support out from under the wheat market, and there's more of a focus on global fundamentals, which are not bullish," Place said.
Wheat futures have been under pressure from a global wheat oversupply and poor exports.
CBOT wheat Wv1 was down 9-3/4 cents at $5.85-3/4 per bushel, and corn Cv1 eased 4-1/2 cents to $4.71-3/4 a bushel.
Traders are also grappling with how rising fuel and fertiliser prices may influence U.S. farmers' allocation of acres for corn and soybeans this spring.
