EU wheat falls with Black Sea corridor talks in focus

PARIS, Oct 14 (Reuters) – Euronext wheat fell on Friday, reversing day-earlier gains, as traders waited to see if talks planned this weekend between United Nations and Russian officials would yield progress towards extending a wartime corridor for Ukrainian grain.

Renewed recesssion fears among investors also curbed grain markets, dealers said. MKTS/GLOB

December milling wheat BL2Z2 on Paris-based Euronext settled down 1.5% at 350.75 euros ($341.24) a tonne but held chart support at 350 euros.

It was up 0.8% over a volatile trading week that saw it hit a 3-1/2 month peak before giving back most of its gains.

Wheat markets have been grappling with mixed indications over the U.N.-backed shipping corridor, which has allowed Ukraine’s exports to pick up despite its war with Russia.

Euronext rose on Thursday after a Russian official warned that Moscow could oppose extending the corridor beyond November.

However, some traders saw potential for U.N. representatives due in Moscow in Sunday to make headway in talks, following Thursday’s meeting between between Russian President Vladimir Putin and Turkish counterpart Tayyip Erdogan, who helped broker the corridor deal.

“People have mixed views on the corridor situation. But with the meeting on Sunday there’s a bearish risk for prices,” a futures dealer said.

Chicago wheat Wv1 was down about 2% in U.S. trading.

Wheat futures have also been capped this week by sluggish U.S. exports and current competition from cheaper Russian supplies, as illustrated by results reported from an Algerian import tender.

In France, farmers stepped up soft wheat sowing in the week to Oct. 10, with 21% of the expected area drilled against 3% the previous week, data from farm office FranceAgriMer showed.

However, rain this week and persisting fuel shortages linked to oil refinery strikes may slow sowing progress.

($1 = 1.0279 euros)

(Reporting by Gus Trompiz Editing by Mark Potter)

((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.