European wheat futures declined on Thursday after Russian President Vladimir Putin suggested a potential peace agreement could be reached to end the war in Ukraine, though his remarks did little to ease market concerns over supply disruptions.
The most-active December milling wheat contract on Paris-based Euronext fell 3.2% to €248.5 ($289.13) per metric ton at 1636 GMT, having earlier touched a session low of €243.25 per ton. The move followed Putin’s comments at an economic forum in Russia’s Far East, where he acknowledged a chance for peace talks but noted that renewed negotiations had become more difficult due to Ukrainian strikes on shipping and Kyiv’s restrictions on civilian aircraft over Russian airspace.
Traders scaled back positions after a sharp rally earlier in the week, with Chicago wheat futures also retreating from multi-year highs reached prior to Putin’s remarks. Market participants had initially reacted to the potential for reduced tensions in the Black Sea region, which could facilitate grain shipments from Russia and Ukraine. However, the lack of concrete signals pointing to an immediate de-escalation in military operations led to profit-taking and a moderation of the downward move.
The session’s price action reflected the fragile balance between geopolitical developments and agricultural market dynamics, with European wheat prices remaining sensitive to any shifts in the conflict’s trajectory.
