GRAINS-Wheat rises on renewed Iran war tensions, dry US weather

By Tom Polansek

CHICAGO, April 13 (Reuters) - U.S. wheat futures rose on Monday and corn was nearly flat as rising crude oil prices underpinned the grain markets after talks on ending the Iran war collapsed.

President Donald Trump said the U.S. military began a blockade of ships leaving Iran's ports and oil prices climbed back over $100 per barrel.

"Geopolitics seem to be driving the price action," Kevin Stockard, commodity broker for CHS Hedging, said in a note.

Most-active wheat futures rose 11-3/4 cents to $5.83 a bushel on the Chicago Board of Trade by 1 p.m. CDT (1800 GMT). K.C. May KWK26 hard red winter wheat futures were up 14 cents at $6.04-3/4 per bushel.

Dry weather in the southern U.S. Plains, where farmers grow hard red winter wheat, helped boost prices.

CBOT corn edged up 1/4 cent to $4.41-1/4 a bushel, while soybeans fell 12-1/2 to $11.63-1/4 a bushel.

“Wheat, corn and soybeans are being supported today by fears of escalation between the United States and Iran following the lack of agreement in the peace talks and rising crude oil prices,” said Matt Ammermann, commodity risk manager at StoneX.

Soybean futures were lower ahead of the closing of trading after hitting a two-week high on Friday, when soymeal prices surged and the U.S. reported an unusual sale of soymeal to Italy. Weaker soymeal prices on Monday hurt soybean futures, Ammermann said.

"This support is now fading, with U.S. soymeal export prices looking uncompetitive," he said. "Fears about the impact of industrial disputes in Argentina seem to have shifted some soymeal demand to the U.S.”

Wheat and corn prices have faced headwinds from expectations of large supplies.

"Major exporters have plenty of stocks," said Andrew Whitelaw, analyst at agricultural consultants Episode 3 in Canberra.