Analysts said that U.S. Corn futures dropped more than 1% and Wheat futures also fell as fears of a military escalated in the Black Sea grain-export region eased.

Soybeans fell on the uncertainty surrounding Chinese demand for U.S. supply of the oilseed.

Chicago Board of Trade March Corn futures were down 6-1/4 Cents to $4.43-3/4 a bushel as of 1 pm CST (1900 GMT) and March Wheat was down 2 Cents at $5.39 per bushel. CBOT January soyabeans were down 8 cents to $11.16-3/4 per bushel. Brokers attributed the corn and wheat declines to Russian President Vladimir Putin’s threat to close Ukraine’s Black Sea access after drone attacks against vessels with ties to Russia. After a five-hour Kremlin summit between President Donald Trump and Putin's top envoys on Wednesday, concerns about a possible threat to grain exports seemed to have subsided.

"They don't give us any details but it appears that maybe Mr. Putin will not try to stop Ukraine shipping grain. Tom Fritz, an EFG Group partner in Chicago, said that he was "rattling his sword" yesterday.

Wheat prices have been impacted by the bearish sentiment due to ample global supplies and bumper crops in Argentina and Australia. Algeria's state grain agency purchased between 810,000 and 870,000 metric tonnes of milling wheat at an international tender. Algeria's purchases have an optional origin. However, traders suspect that some of the wheat may be from the Black Sea or Argentina. Soybean prices fell as traders monitored U.S. sales of soy to China. Scott Bessent, U.S. Treasury secretary, told the New York Times DealBook Summit that China is on track to fulfill its obligations under a U.S. China trade agreement. This includes the purchase of 12,000,000 metric tons soybeans. The Treasury chief stated this would be completed by the end February 2026. Fritz stated that "Mr. Bessent has just whammed the bean market." "He dropped the fact that (China) doesn't have until end February to meet it." Fritz added that we were under the impression it would be by the end December. By February, Brazil is expected to begin harvesting a soybean crop estimated to be the largest ever, which could dominate global trade. U.S. soybean shipments to China have gained momentum. According to a Tuesday shipping schedule, at least six bulk vessels are scheduled to load soybeans at Gulf Coast Terminals by mid-December.

(source: Reuters)