GRAINS-Chicago grain, soybean futures slide as Trump signals Iran conflict may ease

By P.J. Huffstutter

CHICAGO, April 1 (Reuters) - Chicago Board of Trade corn, wheat and soybean futures slumped on Wednesday in a flurry of technical trading, as investors shed positions after U.S. President Donald Trump's comments suggested an end to the Middle East conflict could be close.

Trump told Reuters the U.S. would end its war on Iran fairly soon and could return for "spot hits" if needed, hours before he was scheduled to make a prime-time address to the nation. The president has vacillated between overtures towards ending U.S. military activity and threatening escalation against Iran if that nation does not give in to U.S. demands. MKTS/GLOB

Grains followed crude oil and the U.S. dollar .DXY lower, while Wall Street's main indexes rose on Wednesday, building on their biggest one-day gains in nearly a year. O/R

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 diesel and fertilizer prices. Countries including top palm oil producer Indonesia have announced plans to expand biofuel blending in response to soaring oil prices.

"With equities and metals up hard, what you're seeing in today's market moves are all about money flow," said Karl Setzer, partner at Consus Ag Consulting.

CBOT wheat futures dropped to a near one-week low during the session, after setting a three-week high on Tuesday on concerns about dryness threatening crops in the U.S. Plains.

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 3.6% at $5.94 a bushel as of 11:52 a.m. CDT (1652 GMT), interrupting a six-session rally built on concern about worsening crop conditions in the U.S. wheat belt.

CBOT corn Cv1 dropped 1.3% to $4.52 a bushel after earlier touching $4.48-1/2 a bushel, the lowest price since March 10.

CBOT soybeans Sv1 fell 0.5% to $11.64-3/4 a bushel. U.S. soybean processors likely crushed 6.430 million short tons, or 214.3 million bushels, of soybeans in February, analysts said ahead of a monthly USDA report due on Wednesday.

U.S. farmers plan to plant less corn and more soybeans in 2026 than last year, the U.S. Department of Agriculture 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.