I just saw that the grains in Chicago are in the red this morning. Everything started with the news that Iran declared the Strait of Hormuz completely open to commercial traffic - a move that caused oil futures to crash within minutes.



When oil drops like that, it usually drags down grains as well. And indeed: corn lost 0.7%, soybeans the same, while wheat fell nearly 2%. Nothing dramatic, but the movement is clear.

According to analysts, Iran's action is just the beginning of a longer process toward stabilizing the geopolitical situation in that region. In the meantime, those trading grains in Chicago will need to keep an eye on how the global energy situation develops - because when oil moves, agricultural prices usually follow.
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