GRAINS-Wheat slides 2.4%; corn, soybeans fall as Trump announces ceasefire

SINGAPORE, April 8 (Reuters) - Chicago wheat futures fell 2.4% on Wednesday, while corn and soybeans lost around 1% after U.S. President Donald Trump said he had agreed to a two-week ceasefire with Iran.

The wheat market faced additional pressure from improved U.S. weather and expectations of higher Russian output.

FUNDAMENTALS

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 fell 2.4% to $5.83-3/4 a bushel, as of 0008 GMT, to its weakest in two weeks. Corn Cv1 gave up 1.3% to $4.43 a bushel, and soybeans Sv1 fell 0.8% to $11.48-1/4 a bushel.

U.S. West Texas Intermediate crude fell by nearly $20 per barrel after Trump said he had agreed to the ceasefire with Iran that was subject to the immediate and safe reopening of the Strait of Hormuz. O/R

Agricultural markets often take direction from energy prices on increasing use of grains and oilseeds in making biofuels.

Forecasts of rain this week in a swathe of the U.S. Plains tempered concerns about drought stress to crops, adding pressure on prices.

Commodity data firm Argus raised on Tuesday its 2026/27 forecast for wheat production in Russia, the world's largest exporter of the cereal, due to improved yields and a larger planted area estimated for the winter wheat crop.

Argus now projects Russian wheat output this year at 88.7 million metric tons, with a range of 86 million to 91.4 million tons, up from 86.5 million tons forecast in November.

MARKET NEWS

Oil dived, bonds rallied, and stocks surged on Wednesday as a two-week ceasefire in the Middle East was seen as paving the way for a lasting peace and resumption of Gulf oil and gas exports. O/R

DATA/EVENTS (GMT)

0600 Germany Industrial Orders MM Feb

0600 Germany Manufacturing O/P Cur Price SA Feb

0600 Germany Consumer Goods SA Feb

0600 UK Halifax House Prices MM, YY Mar

0645 France Reserve Assets Total Mar

0830 UK S&P Global PMI: MSC Composite - Output Mar