SINGAPORE - Chicago wheat futures fell almost 3% on Wednesday, while corn lost around ​1% after U.S. President Donald Trump said he had agreed to a two-week ceasefire with ​Iran.

The wheat ​market faced additional pressure from improved U.S. weather and expectations of higher Russian output.

"The geopolitical situation has been impacting wheat prices over the ⁠past month or so, and the gains have also been driven by the weather in the U.S.," said Dennis Voznesenski, an analyst at Commonwealth Bank.

"The drop in prices today does seem quite sudden and as a result ​of the ‌ceasefire announcement."

Oil fell ⁠below $100 per barrel ⁠after U.S. President Donald Trump said he had agreed to a two-week ceasefire with ​Iran that was subject to the immediate and safe ‌reopening of the Strait of Hormuz.

The most-active wheat ⁠contract on the Chicago Board of Trade (CBOT) fell 2.8% to $5.81 a bushel, as of 0312 GMT, to its weakest in two weeks. Corn gave up 1.1% to $4.44-1/4 a bushel, and soybeans fell 0.2% to $11.55-1/2 a bushel.

Agricultural markets often follow energy prices, leading to increased use of grains and oilseeds for biofuels.

Forecasts of rain this week across a swathe of the U.S. Plains tempered concerns about drought-stressed crops, adding pressure on prices. Commodity ‌data firm Argus raised on Tuesday its 2026/27 forecast for ⁠Russia's wheat production, the world's largest exporter of the ​cereal, due to improved yields and a larger planted area for the winter wheat crop.

Argus now projects Russian wheat output this year at 88.7 million metric ​tons, with ‌a range of 86 million to 91.4 million tons, up ⁠from 86.5 million tons forecast ​in November.