Chicago wheat dropped by more than 7% on Tuesday as comments by Russia and Ukraine following negotiations in Turkey raised hopes of a ceasefire in a conflict that has disrupted massive grain exports through the Black Sea region.
Corn also fell sharply while soybeans turned lower, pressured by a sharp pullback in crude oil following the face-to-face talks between Russian and Ukrainian delegations.
The most active wheat contract on the Chicago Board of Trade (CBOT) ended the overnight session down 7.3% at $9.79-1/2 a bushel.
CBOT corn fell 3.3% to $7.23-1/2 a bushel while soybeans eased 1.1% to $16.46-1/2.
Russia said it had decided to drastically cut its military activity around Kyiv and Chernihiv, while Ukraine's negotiators said they had proposed at Tuesday's talks that Ukraine adopt neutral status in exchange for security guarantees.
"The war premium in prices is tending to diminish," one European trader said.
The wheat market has been particularly volatile since Russia began its invasion of Ukraine on Feb. 24. The two countries account for about 30% of world exports of the staple cereal.
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