PARIS: Euronext wheat futures fell sharply on Monday as the prospect of further negotiations between Ukraine and Russia as well as the return of rain in the dry US and European grain belts tempered concerns in supply, traders said.
The approach of widely followed data on U.S. plantings and stocks on Thursday also encouraged participants to adjust positions after a record rally in the days following Russia’s invasion of Ukraine.
May milling wheat on Paris-based Euronext unofficially closed 12.75 euros, or 3.3%, at 368.50 euros ($404.87) a tonne, near a one-week low more early.
Chicago wheat fell more than 4% in US trading, still under pressure from a stronger dollar.
The month-long conflict in Ukraine has rattled grain markets by blocking massive supplies of wheat, maize and sunflower oil from the Black Sea, pushing wheat prices on Euronext to record highs above 400 euros .
However, face-to-face talks between the Russian and Ukrainian delegations due to take place in Turkey this week have revived hopes of progress towards a ceasefire.
Signs of continued Russian wheat exports as well as demand for Indian supplies also eased immediate fears of a global supply shortage.
In France, the port loading schedule was lighter after a recovery earlier in the month as traders watched to see if recent reported demand for French wheat would translate into more shipments to replace Ukrainian grain.
Visiting Egypt, one of the world’s largest wheat importers, France’s finance minister said Paris would help ensure Egypt had enough wheat in the coming months, adding that there would be talks between the two countries on wheat prices.
Rains since last week in parts of the drought-hit US plains, as well as rains expected this week in France and elsewhere in Europe after a dry end to winter, have also eased crop concerns.