Wheat drifts with US crop conditions, Iran war talks in focus

CANBERRA/PARIS: Chicago wheat was little changed on Tuesday as forecasts for rain relief in the US Plains, and cautious optimism among investors about US-Iran peace talks tempered reaction to worse-than-expected US crop ratings.

Corn inched down while soybeans edged up.

A higher dollar and ample global supply also kept grain prices in check, analysts said.

The most-traded wheat contract on the Chicago Board of Trade (CBOT) was down 0.08 percent at USD6.05-1/2 a bushel at 1115 GMT.

The US has expressed confidence that peace talks with Iran will go ahead in Pakistan, and a senior Iranian official said Tehran was considering joining, as the end of a ceasefire loomed. This also helped ease oil prices.

Grains and oilseeds have tended to react to crude oil fluctuations during the conflict, partly because crops like corn are used for biofuel and also as disruption to fertiliser supply from the war may affect farming costs and yields.

Latest weather charts suggest some relief for parched areas in the Plains around the end of the month.

“With every Plains weather update now mattering, and broader sentiment still driven by US-Iran headlines, markets are likely to stay nervous and headline-driven,” CM Navigator analyst Donatas Jankauskas said.