Euronext wheat dropped on Monday, to its lowest level in almost two weeks. U.S. and Russian talks aimed at a Black Sea ceasefire in Ukraine raised the expectations of increased grain shipments.

Euronext's front-month May milling grain closed at 222 euros ($239.49), down 1.8% from its previous low of 221.75 euros, reached on March 12.

A futures dealer commented that the market was feeling pressure due to the ongoing negotiations for a ceasefire in Black Sea.

There was still a war premium in wheat prices.

Traders said that a deal on Black Sea Shipping was bad because more Ukrainian and Russian Wheat could be exported.

One German trader stated that "President Trump is likely to announce new tariffs next week on many countries, but details are still vague and we do not yet know if the EU would be involved." "Any EU retaliation would create a storm on the grain markets."

Morocco, which is a major purchaser of EU wheat and will extend the current subsidy program for soft wheat imports through December, has provided some support late in the game. This means that the drought-affected nation will have to import wheat throughout the entire year.

Prices in Poland rose last week following recent Euronext firmness, but weak demand limited increases.

The price of Polish 12,5% protein wheat delivered to port in March/April rose by about 10 zloty per week, to approximately 950 zloty (227.2 euros) per ton.

A Polish trader stated that Polish millers were not in a hurry to purchase, because there appeared to be large stocks of unsold grain on farms. "I estimate that Poland's exports of wheat are about 40% behind the previous year due to heavy competition from Black Sea supplies."

Only one vessel with 30,000 tonnes of Angola cargo left Poland last week, according to traders. Reporting by Michael Hogan & Gus Trompiz. Mark Potter edited the story.

(source: Reuters)