Wheat futures slide after Trump-Putin phone call

Euronext wheat futures reversed early gains and settled lower on Tuesday after news broke that U.S. President Donald Trump and Russian President Vladimir Putin spoke by phone, reviving hopes for a diplomatic resolution to the war in Ukraine and a potential easing of Black Sea grain trade disruptions.

Diplomatic Contact Shifts Market Sentiment

The benchmark December wheat contract on Paris-based Euronext settled 1% lower at €247.25 ($287.30) per metric ton, after initially extending gains from the previous session and approaching last week's high of €259.25. Chicago wheat had jumped more than 3% in overnight trading as U.S. markets reopened after Monday's Labor Day holiday, but those gains were trimmed after the call was confirmed.investing+1

The hour-long conversation between Trump and Putin was described as "constructive and quite candid" by Kremlin foreign policy aide Yuri Ushakov, according to Bloomberg, with the two leaders exchanging views on the recent visits by U.S. envoys Steve Witkoff and Jared Kushner to Moscow and Kyiv. The presidents "agreed to stay in touch, and will call each other promptly as needed," Ushakov said.bloomberg

Weekend Envoy Visits Yielded Little Progress

Wheat markets had rallied earlier in the week on disappointment over the lack of a breakthrough during the weekend diplomatic shuttle. Witkoff and Kushner arrived in Moscow on Saturday before traveling to Kyiv on Sunday for talks with Ukrainian President Volodymyr Zelenskyy. The envoys described the discussions as marking "new momentum," but Zelenskyy told reporters he expected "the war will continue" into the winter months, according to the Kyiv Independent.npr+2

The direct presidential contact, however, rekindled market expectations that negotiations could resume in earnest. Ukraine's Black Sea grain corridor has been a persistent flashpoint in global wheat trade since Russia's full-scale invasion in February 2022, and any progress toward a settlement tends to weigh on prices as traders price in the possibility of restored Ukrainian exports.

Broader Implications

Putin told Trump during the call that Russia did not have "aggressive plans" against Europe, according to the Financial Times, as cited by multiple outlets. Al Jazeera reported the call came as the U.S. restarts broader deal efforts on the Ukraine conflict. Whether the renewed diplomatic activity translates into concrete progress remains uncertain — Bloomberg reported that Ukraine's allies increasingly see the war extending into 2027.politicalwire+3