Euronext wheat fell for a second day on Wednesday, 'hitting a two-week high. Investors reacted to news that Washington and Tehran were 'close to an agreement to end their conflict.

The most active contract, September?milling whey, on Paris' Euronext settled 1.7% lower at 207.50 euro ($243.69) per metric ton after touching a 2-week low of 206.50 euro.

The consultancy CRM Agri reported that "wheat prices continued their decline due to a further drop in crude oil price, while?Iran was reported as being on the verge of an initial peace agreement with the U.S."

During the Middle East conflict, oil influenced grain markets as some crops are used to make biofuels. Meanwhile, rising fuel and fertilizer costs have threatened harvest production.

Euronext's prices have also been lowered by the widespread rains in Europe, which are easing concerns?about crop stresses following a dry spring.

Traders also assessed the initial results of an Algerian import bid. They reported that the state grains agency OAIC purchased around 400,000 tonnes of milling grain, mainly at around $270 per ton, cost and freight.

The?moderate order volume and the expectation that Black Sea origins will fill it, as France is still believed to be excluded for diplomatic reasons, tempered the reaction to the new demand.

A German trader stated that "French prices are similar to those in the Black Sea Region, but France again looks like it is being excluded from the tender due to bad French/Algerian relations."

According to traders, due to limited?other?export demands, an Indonesian buyer wanted a panamax size shipment of 11.5% Black Sea Wheat at $279-$280 per ton, cost and freight included.

Data published by the exchange revealed that financial investors increased their net long positions in Euronext wheat last week when prices rose to a month-high.

(source: Reuters)