Wheat extends decline as Iran talks and USDA report weigh on markets

Wheat futures in the United States extended their longest losing streak since early January as traders reacted to developments in negotiations aimed at easing tensions in the Middle East. Market sentiment was also shaped by expectations of a key USDA report due later in the day.

On the Chicago Board of Trade, the most actively traded wheat contracts fell by as much as 1.6%, marking a fourth consecutive session of losses. Soybean and corn futures also traded lower, reflecting broader weakness across grain markets.

Trading activity resumed after the U.S. Memorial Day holiday, meaning Tuesday’s moves represented investors’ first response to reports of progress in diplomatic talks. Optimism surrounding a potential agreement to de-escalate the three-month conflict initially pressured prices.

U.S. President Donald Trump said negotiations with Iran on extending a ceasefire and reopening the Strait of Hormuz were “proceeding nicely.” However, reports of renewed clashes between U.S. and Iranian forces near the strait overnight reinforced ongoing geopolitical uncertainty.

Analysts noted that losses in wheat were partially limited by a rebound in crude oil prices following the reported tensions. According to commodities expert Joe Davis, the market is regaining a portion of its “war-risk premium,” reflecting continued uncertainty around the region.

Investors are now focused on the latest USDA report, which will provide updated data on wheat crop conditions. Production prospects in the U.S. Plains have weakened in recent months due to persistent drought, adding another layer of support concerns for global grain markets.

Tags: Iran, prices, wheat