European wheat markets weakened on Thursday after remarks from Russian President Vladimir Putin that there was a chance of a peace agreement to end the war in Ukraine. The initial sell-off reflected profit-taking after a recent rally, though losses tempered later in the trading session as traders judged that the comments did not signal a prompt reduction in military activity.
On Paris-based Euronext, the December milling wheat contract - the market's most-active futures month - was down 3.2% at 248.5 per metric ton ( 5289.13) at 1636 GMT. Earlier in the session the contract hit a low of 243.25 per ton, before the decline moderated.
Across the Atlantic, Chicago wheat futures also pulled back on Thursday, retreating from the multi-year highs they reached earlier in the week. Market participants attributed some of the selling to traders taking profits following the recent advance.
Putin made the comments while speaking at an economic forum in Russia's Far East, saying there was a chance for a peace agreement in Ukraine. He also said that restarting negotiations had grown more difficult because of Ukrainian attacks on shipping and Kyiv's advisories asking civilian aircraft to avoid Russian airspace.
Traders reacted to the comments with short-term selling, in part because they saw limited evidence that tensions in the Black Sea region - which have disrupted grain exports - were easing in a way that would quickly allow the resumption of Russian and Ukrainian shipments through the area. Later in the session, market observers noted that Putin's statements did not indicate any immediate reduction in military operations, which helped cap the scope of the rout.
The price action highlights how sensitive grain markets remain to geopolitical signals tied to the conflict and to the operational status of export routes. For now, the market's decline appears driven more by the unwinding of recent gains than by a clear shift in the security environment affecting maritime grain flows.