Wheat Rises on Us Dryness; Soybeans, Corn Firm Ahead of Planting Report

SINGAPORE, March 31 (Reuters) - Chicago wheat futures rose on Tuesday, gaining for a second session as persistent dryness in the U.S. Plains threatens to curb winter crop yields.

Soybean and corn prices rose ahead of a key U.S. planting outlook due later in the day, with the Iran war expected to raise farming costs through higher fuel and fertilizer prices.

FUNDAMENTALS

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 rose 0.7% to $6.11-1/2 a bushel, as of 0008 GMT. Soybeans Sv1 added 0.2% to $11.61-3/4 a bushel, and corn Cv1 gained 0.1% at $4.56 a bushel.

Wheat futures are being supported by dry weather in parts of the U.S. Plains.

Condition ratings worsened last week for winter wheat in U.S. Plains states, including top producer Kansas, as warm and dry weather put crops under stress, U.S. government data showed on Monday.

In Kansas, 40% of the crop was in good or excellent condition as of Sunday, the U.S. Department of Agriculture (USDA) said. That was down from 46% a week earlier and 49% a year ago.

The agency is scheduled to release the prospective U.S. plantings report on Tuesday undefined, as the Iran war is believed to have changed the planting intentions of U.S. farmers, resulting in fewer acres of corn and the lowest quantity of spring wheat planted since 1970, as rising fertilizer and fuel costs dim the profit outlook.

President Donald Trump warned on Monday that the U.S. would obliterate Iran's energy plants and oil wells if Tehran does not open the Strait of Hormuz, after Tehran described U.S. peace proposals as "unrealistic" and fired waves of missiles at Israel.

The USDA announced exporters sold 145,000 metric tons of U.S. corn to unknown destinations for the 2025/26 marketing year. The agency also announced that U.S. corn export inspections for the week ended March 26 were at 1,789,524 bushels, above the range of trader expectations.

MARKET NEWS

Benchmark oil prices extended gains toward their largest ever monthly increase on Monday, as major Wall Street indexes were mixed in choppy trade and investors focused on the war in Iran that they fear will drive inflation and raise the risk of recession across the globe. MKTS/GLOB