Grains Pull Back as US-Iran Tensions Escalate

Grain futures pulled back from contract highs in a consolidative trade on August 31. The U.S. dollar index fell by around 120 points, while front-month crude oil futures rose to their highest mark in over a week.

The USDA reported daily export sales of 159,000 MT of soybeans for delivery during the 2026-27 marketing year. This came as the U.S. and Iran exchanged strikes for the first time in about a month, with American forces hitting an island in the Strait of Hormuz and Iran responding with attacks on the United Arab Emirates and Jordan.

Crude oil prices rose sharply, with Brent climbing 2.4% to above $90 a barrel. European natural gas prices also increased, as did WTI Nymex crude oil futures, which rose above $86 a barrel.