Wheat tumbles as Ukraine-Russia talks boost ceasefire hopes

Chicago wheat dropped by more than 7 percent on Tuesday as comments by Russia and Ukraine following negotiations in Turkey raised hopes of a ceasefire in a conflict that has disrupted massive grain exports through the Black Sea region.

Corn also fell sharply while soybeans turned lower, pressured by a sharp pullback in crude oil following the face-to-face talks between Russian and Ukrainian delegations.

The most active wheat contract on the Chicago Board of Trade (CBOT) ended the overnight session down 7.3 percent at USD$9.79-1/2 a bushel.

CBOT corn fell 3.3 percent to USD$7.23-1/2 a bushel while soybeans eased 1.1 percent to USD$16.46-1/2.

Russia said it had decided to drastically cut its military activity around Kyiv and Chernihiv, while Ukraine’s negotiators said they had proposed at Tuesday’s talks that Ukraine adopt neutral status in exchange for security guarantees.

“The war premium in prices is tending to diminish,” one European trader said.

The wheat market has been particularly volatile since Russia began its invasion of Ukraine on Feb. 24. The two countries account for about 30 percent of world exports of the staple cereal.

The Western Producer

Tags: wheat, сorn, dropped, Ukraine, Russia, soybeans, Black Sea region