By Kirk Maltais


--Wheat for May delivery rose 3% to $5.85 1/4 a bushel on the Chicago Board of Trade Thursday, leading grains higher on weather issues seen in U.S. while the Iran conflict drives the dollar and crude oil up.

--Corn for May delivery rose 2.2% to $4.53 1/2 a bushel.

--Soybeans for May delivery rose 0.8% to $11.79 a bushel.


HIGHLIGHTS


Lingering Dryness: Winter wheat growing areas in the western plains have been struggling with increasingly dry conditions, according to data the U.S. Drought Monitor updated Thursday. While dryness eased slightly from the previous week, conditions are still drier than when they started the year, and traders see the potential for rainfall to turn more sparse in the coming week. "Wheat took off today on the back of drier forecasts for the western plains," Marex's Charlie Sernatinger said in a note.

Saddle Up: CBOT grains followed energy futures higher throughout the day, as the conflict with Iran continues. Because of the role corn and soybeans have as a feedstock for renewable fuels like ethanol and biodiesel, they've been moving closer to the way petroleum futures fluctuate. "The general marketplace is factoring in an extended conflict in the Middle East, as neither side is showing any signs that an end to the attacks is coming anytime soon," said Brian Grete of Commstock Investments. "That's fueling buying in the grain and soy markets."


INSIGHT


Putting on Muscle: The U.S. dollar index was higher today, as inflation jitters stoke fears that U.S. interest rates will take longer to decline. Natural gas-powered aluminum plants in the Middle East suspended production and deliveries because fuel supply has been hit and shipment routes are closed. That's added to inflation pressure coming from the conflict. CME's FedWatch tool puts odds of only one Fed cut this year at 36.2%, up from 22% a week ago, when the most expected outcome was two cuts. CBOT grain futures usually move inverse to the dollar, but not today.

Getting the Ball Rolling: An updated Farm Bill passed through the House Agriculture Committee overnight by a 34-17 vote. The measure was met with support from agricultural interest groups, with the National Association of State Departments of Agriculture calling for, "House leadership to swiftly bring the legislation to the floor for consideration." An updated Farm Bill is seen as supporting farmers, which may affect their economic decisions as the year progresses.

Mixed Expectations: Export sales of U.S. corn were strong this week, while sales of both soybeans and wheat landed on the low end of projections. The USDA said that for the week ended Feb. 26, export sales of U.S. corn totaled 2.18 million metric tons across the 2025/26 and 2026/27 marketing years. Soybean sales came in at 383,500 tons, and wheat sales totaled 258,100 tons. For corn, this week's total beat forecasts from analysts surveyed by The Wall Street Journal, who projected sales to land anywhere from 700,000 tons to 1.6 million tons.


AHEAD


--The CFTC will release its weekly Commitment of Traders report at 3:30 p.m. ET Friday.

--The USDA will release its weekly Grain Export Inspections report at 11 a.m. ET Monday.

--The USDA will release its monthly WASDE report at noon ET Tuesday.


Paulo Trevisani contributed to this article.

Write to Kirk Maltais at kirk.maltais@wsj.com

(END) Dow Jones Newswires

03-05-26 1524ET