PARIS: Euronext wheat gave up earlier gains on Wednesday to fall for a second day as traders assessed diplomatic discussions to restore Ukrainian grain exports through the Black Sea.
September milling wheat on Paris-based Euronext settled down 1% at 381.75 euros ($409.58) a tonne, after earlier rising to as high as 392.75 euros.
The market continued to react to headlines on talks over a possible Black Sea corridor for Ukrainian shipments blocked since Russia’s invasion.
Turkey’s foreign minister pointed to positive talks with his Russian counterpart on Wednesday, but Moscow and Kyiv later blamed each other for the continuing blockade of Ukrainian ports.
Traders said comments by the Kremlin saying Western sanctions should be lifted to allow Russian grain to reach the international market also created unease about further disruption to Black Sea trade.
As participants awaited further clues about the prospects for Ukrainian exports, technical pressure and improving US and European crop weather weighed on wheat markets, traders said.
In France, more showers on Wednesday may provide further relief for cereals after spring drought.
In initial harvest forecasts, France’s farm ministry projected higher production of winter barley and rapeseed this year as an increased area was expected to offset lower yields as some crops suffer from drought.
Early harvesting of winter barley started last week in part of southwest France but a clearer picture of yield trends was not expected until late June, traders said.
The ministry did not give a production estimate for wheat, harvesting of which usually begins in July.
Wheat export premiums in France remained firm, supported by talk of a latest run of sales to Morocco, and reported interest from southeast Asian millers, traders said.
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