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 and ended slightly higher 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 pressure on corn prices and a ceiling for soybean futures.

The most-active soybean contract on the Chicago Board of Trade Sv1 settled 2-1/4 cents higher to $11.63-1/2 per bushel.

Grains are sensitive to crude oil because of the use of corn and soyoil in biofuels and as investors have used the crops as an inflation hedge during the Iran crisis.

Corn's losses were limited by 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 global oversupply and poor exports.

CBOT wheat Wv1 ended 7-1/2 cents lower at $5.87-3/4 per bushel, and corn Cv1 settled 6 cents lower at $4.59-1/2 per 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.