Wheat slips as traders track Black Sea export talks

Chicago wheat futures drifted lower on Monday as traders assessed whether renewed diplomatic activity could loosen the logjam on Black Sea grain exports from Russia and Ukraine, two of the world's largest suppliers. Corn also slipped, while soybeans posted a modest gain.

The most-active wheat contract on the Chicago Board of Trade was down 0.3% at $7.04-1/2 a bushel by 0109 GMT. Corn shed 0.3% to $5.26-1/2 a bushel, and soybeans added 0.2% to trade at $13.21 a bushel.

Attention has returned to the export outlook after Ukrainian President Volodymyr Zelenskiy said on Friday that India, Turkey, Egypt and other Middle Eastern countries were involved in talks on reopening shipping in the Black Sea. Turkey has put forward proposals to Moscow on shipping security, though no substantive negotiations are yet under way.

Traders are watching for signs that a truce could revive cargo movements, which have come to a near standstill because of heavy attacks on vessels and port infrastructure by both sides. An analysis of industry data indicates Russia could swiftly bring back up to 80% of its grain terminal capacity in the Black Sea and the Sea of Azov if diplomatic efforts to halt the mutual strikes lead to a ceasefire.

Importers across Asia, the Middle East and Africa that depend on the region for grain have found it difficult to secure supplies. Even so, expectations of a near-term recovery in shipments remain muted, with ports and ships still coming under attack.

In energy markets, oil prices rebounded by more than 1% after US President Donald Trump rejected a peace proposal from Iran aimed at resolving their conflict and reopening the Strait of Hormuz, leaving Middle East tensions elevated.