Chicago wheat futures eased Tuesday after the United States announced that it has reached agreements with Russia, Ukraine and other countries to ensure safe navigation on the Black Sea.

Analysts predicted a large South American soybean crop and corn prices also dropped.

The Chicago Board of Trade's (CBOT) most active wheat contract settled at $5.43-1/4 per bushel after hitting its lowest level since March 5.

Soybeans fell 5-1/2 cents, to $10.01-3/4, their lowest price since March 12.

Corn dropped 6-3/4 cents, finishing at $4.57-3/4 per bushel.

The U.S. has said that it has reached separate agreements for safety of Black Sea Navigation with Ukraine and Russia, as well as an agreement to ban attacks on energy facilities by both countries.

Analysts say the news is bearish for futures of wheat as it will pave a way for more secure shipping for wheat exports from both countries.

Analysts say that improved weather forecasts for important growing regions have also pushed up wheat futures.

Mike Zuzolo of Global Commodity Analytics said that planting in corn is ahead of schedule in the south of the U.S. This has a negative impact on futures price.

In a report on crops released by the U.S. Department of Agriculture, it was stated that corn seeding in Louisiana had reached 65% completion, while in Texas progress had reached 45%, and in Mississippi, 14%.

Analysts report that soybeans fell, as traders watched developments in the U.S. tariff negotiations and South America was expecting a large harvest.

Investors are worried about the retaliation that could be taken against U.S. agricultural products. Renee Hickman reported from Chicago. (Editing by Deepa Babington, with additional reporting by Ella Cao in Beijing, Mei Mei Chu and Sybille De La Hamaide in Paris and Sybille Cao in Beijing.

(source: Reuters)