European wheat prices dropped to a two-month low on Monday after reports suggested Russia was reviewing proposals to ensure safe grain transport across the Black Sea. The price of wheat on Paris-based Euronext fell 2.7% to €227.75 ($255.17) per metric ton at 1558 GMT, hitting a low of €226.50 earlier in the session.
Interfax news agency reported that Russian Deputy Foreign Minister Alexander Alimov stated Russia was examining various proposals to ensure safe grain transport and was in contact with Turkey on the matter. Russian and Ukrainian wheat shipments through ports in the Azov-Black Sea region have been at a near standstill since mid-August due to attacks on vessels and damage to terminals.
EU wheat markets had strengthened due to the Black Sea shipping disruption, with more export business shifting to Europe. The potential resumption of grain transport across the Black Sea could ease supply concerns and put downward pressure on prices.