CBOT Grains Tumble on Iran Diplomacy Hopes
Chicago Board of Trade (CBOT) grain and soybean futures fell sharply on Tuesday following oil markets lower due to comments by Qatari and U.S. officials that raised hopes for a diplomatic resolution to the Iran conflict.
The potential improvement in oil flows through the Strait of Hormuz weighed on grains, with CBOT's most-active corn futures contract settling 7 cents lower at $4.65-1/2 a bushel, while soybeans fell 14-1/2 cents to $11.77-3/4 per bushel.
The U.S. Department of Agriculture (USDA) reported that 61% of corn was in good-to-excellent condition as of Sunday, down from 63% a week earlier. Analysts said hot and dry weather during the Midwest corn crop's critical pollination stage has likely dented yield potential.
Wheat traders continued to track risks to Black Sea export flows from fighting between Russia and Ukraine, with Russian export prices falling last week under pressure from rising freight rates and insurance premiums.