CBOT wheat futures weaken as war premium fades

CHICAGO, May 7 (Reuters) - Chicago Board of Trade wheat futures fell on Thursday on hopes for a truce between the U.S. and Iran, with falling crude oil prices also putting pressure on the grain.

• Oil prices swung between gains and losses in volatile trading on Thursday, ultimately settling lower after a report said the United States was considering restarting operations to escort commercial ships through the Strait of Hormuz as early as this week. O/R

• The war has driven massive fluctuations in oil prices, which influence agricultural markets as corn and soybean oils are widely used for the production of biofuels.

• Market players are also monitoring weather in the drought-stricken U.S. wheat belt. Though rainfall hit the U.S. Plains this week, some dry areas of the region missed key precipitation, while in others, the rainfall may not have been enough to save the crop, analysts said.

• However, freezing temperatures caused only minimal frost damage, paring back some weather concerns.

• Russia's IKAR consultancy cut its forecast of Russia's 2025/26 wheat exports to around 44.5 million metric tons, from 46.0 million tons previously.

• CBOT July wheat WN26 fell 5 cents to end at $6.12-1/4 per bushel.

• K.C. July wheat KWN26 settled 19-3/4 cents lower to $6.67-1/4 per bushel.

• Minneapolis July spring wheat MWEN26 settled 18-1/4 cents lower to $6.73-3/4 per bushel.