GRAINS-Chicago grains rebound with oil as hopes of swift end to Iran war subside

PARIS/BEIJING, April 2 (Reuters) - Chicago corn, wheat and soybean futures regained ground on Thursday in step with crude oil after a televised address by U.S. President Donald Trump dampened investor hopes of an imminent end to the Iran war.

Trump said on Wednesday night that the U.S. will carry out aggressive strikes on Iran over the next two to three weeks, cooling expectations in recent days of de-escalation in the month-old conflict.

Benchmark Brent crude prices LCOc1 jumped around 7%, as investors saw no immediate prospect of an easing in supply disruption in the Gulf. O/R

"The Iran conflict shows no signs of a near-term off-ramp, keeping the crude oil supply shock - and its transmission into agricultural markets - firmly in place," Peak Trading Research said in a note.

The most-active soybean contract Sv1 on the Chicago Board of Trade was up 0.3% at $11.72-3/4 a bushel, as of 1022 GMT.

CBOT wheat Wv1 added 1.6% to $6.06-3/4 a bushel, while corn Cv1 rose 0.7% to $4.57-1/4 a bushel, recovering from a three-week low on Wednesday.

A sharp rise in the dollar index =USD capped gains in Chicago prices by making them more expensive to overseas buyers. FRX/

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.

Grain markets were partly factoring in "the likelihood of higher fertiliser prices leading to reduced input use, which lowers yields and drives prices higher to maintain farmer profitability," said Rabobank analyst Vitor Pistoia.

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 fertilizer and fuel costs will prompt farmers to shift even more acreage from corn to soybeans than projected by the USDA.

The wheat market was also assessing the impact of drought in the U.S. Plains. Beneficial rains were expected in the U.S. southeastern Plains, though dryness will continue to cause stress for crops in western areas, according to forecasters.