Chicago wheat futures were almost flat on Tuesday, after a sharp drop in the previous session due to improved weather forecasts for key growing regions. Traders are monitoring ongoing Russia-Ukraine negotiations.

By 1108 GMT, the most active wheat contract on Chicago Board of Trade was unchanged at $5.48-1/4 per bushel.

Analysts said that forecasts for the Black Sea region showed positive weather conditions and predicted rain in the U.S. Wheat belt.

Prices could also be affected by the U.S. and Russian talks about Ukraine, as a possible ceasefire would secure Black Sea shipments.

This could improve the prospects of grain exports from Ukraine. The war has not affected Ukrainian wheat exports, at least as far as volume is concerned," Commerzbank stated in a report.

On Tuesday, Russian Foreign Minister Sergei Lavrov stated that the talks between U.S. officials and Russians in Saudi Arabia had been focused on the safety and security of shipping in Black Sea. A new agreement on this subject is possible.

In a weekly report released on Monday, the U.S. Department of Agriculture rated 49% of winter wheat in Kansas, the top producer, as "good to excellent". This was an increase of 1 percentage point over the previous week. However, ratings dropped in Oklahoma due to wind-whipped soils losing moisture.

The strong dollar has further pushed up the price of wheat, making U.S. imports less competitive.

Both soybeans and corn slipped lower due to the U.S. Tariff talks and reduced demand.

Soybeans fell 0.4% to $10.03 per bushel. This is the third session in a row that soybeans have declined, amid the China/U.S. Trade Standoff and Brazil's bumper crop.

Corn fell by 0.4%, to $4.62-1/2 per bushel. Speculators withdrew ahead of the tariffs, and also in anticipation that farmers would plant more corn.

Traders reported that commodity funds sold futures contracts for Chicago Board of Trade corn, wheat, soymeal, and soyoil on Monday. The funds were even on soybeans.

(source: Reuters)