European Wheat Prices Plummet Amid Rumors of Black Sea Truce Talks
European wheat prices continued their downward trend on Tuesday, reaching their lowest level since mid-July. The decline was partly due to rumors of talks between Russia and Ukraine about halting attacks on vessels in the Black Sea, which eased concerns about a squeeze on exports.
The most active position on Euronext, December wheat, settled 1.2% down at €227.50 ($262.54) a metric ton after touching its lowest since July 15. September futures led losses, with the contract settling 2.1% down at €213.25 a ton after hitting its weakest since July 10.
Participants were exiting positions in the front month and there was a lack of short-term export demand, according to traders. The unconfirmed chatter about discussions on a safe shipping agreement between Russia and Ukraine has been circulating, but market participants are waiting for actual signs of such an agreement.