Black Sea Wheat Premium Erodes as Ukraine-Russia Talks Loom

Wheat futures have continued to decline as markets partially unwound their premium associated with Black Sea supply risks. The Chicago wheat market has seen a 2.6% drop in the previous session, following an initial gain of almost 1% on Friday.

The main factor weighing on prices is the expectation of possible talks between Ukraine and Russia. Vladimir Putin's comments suggesting constructive dialogue have eased traders' concerns about disruptions to grain supplies from the Black Sea region.

However, shipping situation remains unstable due to new attacks on vessels and infrastructure in the Black Sea. This has renewed risks to trade routes, despite initial reports of the latest strikes pushing wheat futures higher on Friday.