GRAINS-Wheat slides 3% after Trump announces ceasefire

By Sybille de La Hamaide and Naveen Thukral

PARIS/SINGAPORE, April 8 (Reuters) - Chicago wheat futures fell 3% on Wednesday, while corn lost nearly 1% after U.S. President Donald Trump 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.

"The geopolitical situation has been impacting wheat prices over the past month or so, and the gains have also been driven by the weather in the U.S.," said Dennis Voznesenski, an analyst at Commonwealth Bank.

"The drop in prices today does seem quite sudden and as a result of the ceasefire announcement."

Oil fell as much as 16% to $100 a barrel after U.S. President Donald Trump said he had agreed to a two-week ceasefire with Iran subject to the immediate and safe reopening of the Strait of Hormuz. O/R

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 fell 3% to $5.80-1/4 a bushel, as of 1100 GMT, after hitting $5.77-1/4, its weakest in two weeks, earlier in the session.

Corn Cv1 gave up more than 0.8% to $4.45-1/2 a bushel. Soybeans Sv1 gained a thin 0.1% to $11.50-1/2 a bushel after falling as low as $11.40-1/4 a bushel earlier.

Meanwhile in Europe, benchmark milling wheat contract BL2c1 on Paris-based Euronext fell below 200 euros, trading 2% lower at 199 euros ($232.55) a metric ton.

Agricultural markets often follow energy prices, leading to increased use of grains and oilseeds for biofuels.

Forecasts of rain this week across a swathe of the U.S. Plains tempered concerns about drought-stressed crops, adding pressure on prices.

Operators are also waiting for the U.S. Department of Agriculture's monthly supply and demand report due to be released on Thursday.

Commodity data firm Argus on Tuesday raised its 2026/27 forecast for wheat production in Russia, the world's largest exporter of the cereal, to 88.7 million metric tons, from its November prediction of 86.5 million tons.