MUMBAI: US wheat and corn futures fell on Monday on hopes supply from the Black Sea region could normalise as Russian and Ukrainian officials gave their most upbeat assessments yet of progress in their talks following Moscow’s invasion of its neighbour.

Soybean futures rose on Argentina’s decision to halt exports registration of soy products, which could tighten the oilseed supplies already squeezed by drought.

“Wheat was overbought. As discussion between Russia and Ukraine are progressing, the market is re-evaluating future price scenarios,” said a Mumbai-based dealer with a global trading firm.

US Deputy Secretary of State Wendy Sherman said Russia was showing signs of willingness to engage in substantive negotiations about ending a conflict in which thousands have died. More than 2.5 million people have fled.

Ukraine’s government will introduce a plan to support the crop-sowing campaign in an effort to safeguard food supplies amid Russia’s invasion, Prime Minister Denys Shmygal said on Sunday.

The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 1.1% at $10.94-1/4 a bushel, as of 0438 GMT.

Corn dropped 0.85% to $7.56 a bushel while soybeans rose 0.45% to $16.83-1/2 a bushel.

Soybean prices are getting support from downward revision in output number from South America and ambiguity over exports from top exporter Argentina, the dealer said.

Argentina has halted registration of export sales of soy oil and meal, the South American country’s government said in a statement on Sunday, drawing swift condemnation from the industry in the world’s top exporter of processed soy products.

Sharp drop in palm oil and crude oil prices on Monday morning also weighed on grains, dealers said.

Oil prices shed as much as $4 a barrel on Monday, extending last week’s losses as diplomatic efforts to end the war in Ukraine were stepped up and markets braced for higher US rates.