GRAINS-Wheat eases on US rain forecast; corn, soybeans firm

By Naveen Thukral

SINGAPORE, April 7 (Reuters) - Chicago wheat futures lost more ground on Tuesday, pressured by forecasts of much-needed rains that could improve crop prospects in the drought-stressed U.S. Plains.

Corn and soybeans edged higher on support from higher crude oil prices.

"There are some rains forecast for U.S. Hard Red Winter wheat areas, and overall global supplies are adequate for now," said one grains trader in Singapore.

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 fell 0.1% to $5.94-3/4 a bushel as of 0226 GMT. Corn Cv1 added 0.1% to $4.54-1/4 a bushel, and soybeans Sv1 rose half a cent to $11.67-1/4 a bushel.

Wheat prices fell on forecasts of showers in the Plains that could lift yield prospects for winter wheat in the heart of the U.S. breadbasket.

Forecasters said beneficial rainfall is expected across the eastern two-thirds of the Plains wheat belt over the next 10 days, although chances remain lower in the far western third of the region.

The U.S. winter wheat crop was rated 35% good-to-excellent in the U.S. Department of Agriculture's first weekly crop progress report of the 2026 growing season, released after markets closed on Monday.

The report showed crop ratings in the week ending on April 5 were the worst for this time of year since 2023, down from 48% a year earlier. Analysts had expected 42%, according to a Reuters poll.

Oil prices extended gains on Tuesday as U.S. President Donald Trump heightened his rhetoric against Iran, threatening stronger action if the country fails to reopen the Strait of Hormuz, a key global oil transit chokepoint. O/R

Grains and oilseeds often take a price direction from energy markets with the increasing use of agricultural products in making renewable fuels.