PARIS/SINGAPORE - Chicago grain futures fell ‌on Thursday, in line with a sharp fall in crude prices, on hopes of a potential ​truce between the U.S. and Iran, while forecasts of rain in parched U.S. areas added further pressure on ​wheat.

The most-active ​wheat contract on the Chicago Board of Trade (CBOT) lost 0.8% to $6.12-1/2 a bushel, as of 0915 GMT. Soybeans slipped 0.2% to $ 11.92-3/4 a bushel ⁠and corn fell 0.5% to $4.66-1/4 a bushel. Soybeans slid to their lowest since April 28 while corn hit its weakest since April 27. Oil prices slid around 2% to below $100 a barrel on renewed hopes for a U.S.-Iran peace deal that could gradually ease supply disruptions caused ​by the ‌closure of the ⁠Strait of Hormuz.

"If the ⁠weakness in energy continues, grains may still have more downside ahead," CM Navigator analyst Donatas Jankauskas said. Tehran ​said it was reviewing Washington's peace proposal that sources said ‌would formally end the war while leaving unresolved the ⁠key U.S. demands that Iran suspend its nuclear programme and reopen the Strait of Hormuz.

The war has driven fluctuations in oil prices, strongly influencing agricultural markets, as corn and soybean oils are widely used for the production of alternative fuels. Meanwhile, rain is forecast to hit dry U.S. wheat zones this week, although traders said precipitation may come too late to save the crop in some areas.

The U.S. Department of Agriculture's weekly report said 31% of the nation's winter wheat crop was in good to ‌excellent condition, up from 30% last week but still the ⁠lowest for this time of the year since 2023. Algeria's state ​grains agency OAIC has bought around 390,000 to 420,000 metric tons of milling wheat in an international tender which closed on Wednesday, European traders said.

Prices at 0915 GMT Last Change Pct Move CBOT wheat 612.50 -4.75 -0.77 CBOT ​corn 466.25 -2.25 -0.48 CBOT soy 1192.75 -2.00 -0.17 Paris wheat 207.00 -0.50 -0.24 Paris ‌maize 216.25 -1.50 -0.69 Paris rapeseed 514.75 -2.00 -0.39 Euro/dlr 1.18 0.00 0.17 Most active contracts - Wheat, corn and soy US cents/bushel, Paris ⁠futures in euros per tonne