GRAINS-Chicago grains slip with oil on hopes for end to Iran war
By Gus Trompiz and Naveen Thukral
PARIS/SINGAPORE, April 1 (Reuters) - Chicago corn, wheat and soybean futures turned lower on Wednesday in step with crude oil as investors saw rising chances for an end to the month-old U.S.-Israeli war with Iran.
Comments by U.S. President Donald Trump, who said on Tuesday that the U.S. could end its military attacks on Iran in two to three weeks, bolstered market hopes of de-escalation in the conflict. Trump is also due to give an update on Iran in an address to the nation later on Wednesday. MKTS/GLOB
Grain and oilseed prices have broadly tracked fluctuations in crude oil during the war, reflecting the use of corn and soyoil in biofuels and knock-on effects on crop production from rising energy and fertiliser prices.
Countries including top palm oil producer Indonesia have announced plans to expand biofuel blending in response to soaring oil prices.
"The main factor is the pullback in crude oil after the latest comments on the Iran war," a European broker said.
The most-active corn contract on the Chicago Board of Trade (CBOT) Cv1 was down 1.1% at $4.52-3/4 a bushel, as of 1059 GMT, while CBOT soybeans Sv1 eased 0.5% to $11.65-1/2 a bushel.
CBOT wheat Wv1 fell 2.3% to $6.02-1/4 a bushel, interrupting a six-session rise that took the benchmark to a three-week high on Tuesday.
The weakness in crude oil countered support from U.S. planting data and worsening crop conditions in U.S. wheat belts.
U.S. farmers plan to plant less corn and more soybeans in 2026 than last year, the U.S. Department of Agriculture (USDA) said on Tuesday. Analysts expect the impact of the Iran war on fertilizer and fuel prices to lead farmers to shift more acreage from corn to soybeans than projected by the USDA.
The agency also estimated that the all-wheat acreage this year will be the smallest in records going back to 1919.
Reduced planting could further curb U.S. wheat harvest prospects as dryness stresses some crops.
"A big chunk of Hard Red Winter wheat crop in the U.S. is facing drought," said Tobin Gorey, founder of commodities consultancy Cornucopia in Australia.
Rain is set to return to the U.S. Plains this week, though forecasts suggest it may miss some southwestern areas.
Prices at 1059 GMT |
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| Last | Change | Pct Move |
CBOT wheat Wv1 | 602.25 | -14.00 | -2.27 |
CBOT corn Cv1 | 452.75 | -5.00 | -1.09 |
CBOT soy Sv1 | 1165.50 | -5.50 | -0.47 |
Paris wheat BL2c1 | 200.50 | -4.25 | -2.08 |
Paris maize EMAc1 | 206.25 | -3.25 | -1.55 |
Paris rapeseed COMc1 | 511.25 | -3.00 | -0.58 |
WTI crude oil CLc1 | 99.84 | -1.54 | -1.52 |
Euro/dollar EUR= | 1.16 | 0.00 | 0.41 |
Most active contracts - Wheat, corn and soy U.S. cents/bushel, Paris futures in euros per metric ton |
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