GRAINS-Soyoil at 3-year high as war tension builds, wheat slips on rain forecasts
By Gus Trompiz and Naveen Thukral
PARIS/SINGAPORE, April 7 (Reuters) - Chicago soyoil futures rose to their highest since late 2022 on Tuesday, supported by strength in crude oil as a standoff over the Strait of Hormuz threatened more escalation in the U.S.-Israeli war with Iran.
Wheat, however, fell for a second day as forecasts of rain this week in a swathe of U.S. Plains tempered concerns about drought stress to crops.
Price moves were moderate as investors awaited war developments while crop traders were also looking ahead to a monthly U.S. Department of Agriculture crop report on Thursday.
The most-active soyoil contract BOv1 on the Chicago Board of Trade (CBOT) was up 0.6% at 70.38 cents per pound by 1258 GMT, after earlier reaching its highest since December 1, 2022, at 70.47 cents.
CBOT soybeans Sv1 ticked up 0.1% to $11.68 a bushel, while corn Cv1 eased 0.4% to $4.52 a bushel
CBOT wheat Wv1 fell 0.5% to $5.92-1/4 a bushel.
"Overall the week promises to be eventful both on the geopolitical side, with Trump's deadline for Iran to open the Strait of Hormuz, and on the fundamental side, with the USDA report due on Thursday," CM Navigator analyst Donatas Jankauskas said.
Oil prices LCOC1 extended gains as Iran showed no sign of agreeing to U.S. President Donald Trump's demand that it open the Strait of Hormuz to shipping by the end of Tuesday or suffer massive attacks on its civilian infrastructure. O/R
Grains and oilseeds have drawn impetus from crude oil during the month-old Middle East conflict, partly because agricultural goods like soyoil and corn are widely used for biofuel.
The wheat market was reacting to forecasts of rainfall in the U.S. Plains that may reach a bigger expanse of drought-affected cropland than showers last week.
The prospect of timely moisture deflected attention away from a lower-than-expected estimate of U.S. wheat conditions.
In its first weekly crop progress report of the 2026 growing season, the USDA on Monday rated just 35% of the winter wheat crop as being in good-to-excellent condition, a three-year low.
Corn planting was under way, with 3% of the expected area planted, the USDA also said.
Prices at 1158 GMT |
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| Last | Change | Pct Move |
CBOT wheat Wv1 | 592.25 | -3.00 | -0.50 |
CBOT corn Cv1 | 452.00 | -2.00 | -0.44 |
CBOT soy Sv1 | 1168.00 | 1.25 | 0.11 |
Paris wheat BL2c1 | 202.25 | -0.25 | -0.12 |
Paris maize EMAc1 | 209.00 | 1.00 | 0.48 |
Paris rapeseed COMc1 | 505.25 | -0.50 | -0.10 |
WTI crude oil CLc1 | 114.83 | 2.42 | 2.15 |
Euro/dollar EUR= | 1.16 | 0.00 | 0.15 |
Most active contracts - Wheat, corn and soy U.S. cents/bushel, Paris futures in euros per metric ton |
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