Euronext Wheat Prices Plummet on Diplomatic Efforts

Euronext wheat prices dropped to a one-month low on Friday as diplomatic efforts raised hopes for an end to the war-disrupted Black Sea exports. The benchmark December milling wheat contract settled down 0.3 percent at €236.75 (USD269.73) a metric ton.

The price drop was influenced by a slide in Chicago wheat, which fell around 3 percent before recovering some losses. Ukrainian President Volodymyr Zelenskiy announced that the United States had proposed a trilateral meeting with Ukraine and Russia to discuss ending the conflict.

Turkey is also attempting to broker a Black Sea truce, and large long positions held by investors are encouraging market stability despite the ongoing attacks by Russia and Ukraine. However, continuing hostilities have tempered expectations of near-term de-escalation.