Paris wheat drops on hope of Black Sea de-escalation

Benchmark December wheat BL2Z6 on the Paris-based Euronext exchange ended the daytime trading session down 0.3% at €240.25 ($277.51) a metric ton at 1630 GMT, after earlier rising over 1%.

Russian and Ukrainian ship-borne Black Sea exports have almost stopped after both sides attacked each other's ports and shipping with alternative routes unable to fully compensate.

Trump's statement generated expectations Russian and Ukrainian shipments could be resumed if some safe shipping deal was agreed, but markets remained underpinned by the continuing disruption to shipments.

"Euronext wheat is finding support as Black Sea shipments from Russia and Ukraine remain basically stopped by the fighting," said CM Navigator analyst Donatas Jankauskas. "The U.S. Department of Agriculture (USDA) in its world supply and demand report on Friday did give some bearish wheat estimates, but I do not think this is fully reflecting what is happening in the Black Sea."

"The USDA is still expecting Russia to export 43 million tons of wheat this season, but that looks less realistic with every day that flows from the region remain heavily disrupted."

French wheat has been excluded from Algeria's tenders following political tension between France and Algeria. Despite cuts in Russian and Ukrainian wheat shipments, traders said they had seen no indications French wheat would again be permitted in this week's tender, although this would only be clearer when offers were submitted.

European wheat futures fell in late trade on Monday on hopes of de-escalation in the Black Sea conflict after U.S. President Donald Trump said Ukraine and Russia had agreed not to hit each other's energy targets.

This reversed earlier strength caused by continued interruption of Russian and Ukrainian Black Sea ship-borne exports, while market talk that French wheat would remain excluded from a new purchase tender from big importer Algeria also weighed.