PARIS/SINGAPORE: Chicago wheat, corn and soybean futures edged lower on Tuesday, snapping a two-session rally, as traders assessed uncertainties and tensions surrounding the Strait of Hormuz and forecasts indicating rain in US crop belts.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.6 percent at USD6.37-1/2 a bushel by 0958 GMT.
CBOT soybeans were 0.3 percent lower at USD12.19-1/2 a bushel, edging back from a seven-week peak struck on Monday. Corn ticked down 0.4 percent to USD4.83-3/4 a bushel after hitting a one-year high earlier in the session.
Crude oil eased on Tuesday and investors took some comfort from news that a US-flagged vessel had exited the Gulf under US protection, though military incidents on Monday underscored ongoing shipping disruptions.
“Crude oil is in the driver’s seat, but investors are increasingly focused on the knock-on effects for inflation,” Peak Trading Research said of agricultural commodities.
Conflict-driven fluctuations in oil prices have influenced grain markets, as corn and soyoil are widely used for biofuel. Additionally, rising fuel and fertiliser prices due to shipping constraints are likely to hit agricultural production.
Comments