Black Sea Tensions Ease, But Wheat Prices Still Reel

European wheat futures declined on Monday as traders evaluated the effects of Ukrainian and Russian attacks on ports and shipping infrastructure. Despite initial reports that major grain export terminals in both countries had escaped significant damage, prices dropped around 6% following the U.S. and Iran's pause in strikes over the weekend.

The September milling wheat contract on the Paris-based Euronext exchange fell 0.7% to €231 ($262.65) per metric ton at 1443 GMT after moving between gains and losses during afternoon trading.

Traders expressed relief that Ukraine had not struck the large grain export terminals at Russia's Black Sea port of Novorossiysk, which appeared to have avoided major damage along with wheat export ports in both countries. This news weighed on grain prices and added to Euronext's weakness.