Wheat Continues to Lose Ground on Hopes for Ukraine

US wheat futures extended losses on recently, weighed down by expectations of a resumption of supplies from the Black Sea region as talks between Ukraine and Russia progressed, while soybeans rose in response to Argentina's plan to raise taxes on soybean oil and meal exports.

As of 0453 GMT, the most-active wheat contract on the Chicago Board of Trade (CBOT) was down 3% at $10.3612 per bushel, having fallen to its daily limit of 85 the previous session.

Corn increased by 0.41 percent to $7.33 per bushel, while soybeans increased by 0.41 percent to $16.56 per bushel.

"Wheat purchases have slowed in recent days. Buyers are hoping that shipments from the Black Sea region will begin soon, but they should not be alarmed "said a dealer with a global trading firm based in New Delhi.

Russia and Ukraine, which account for roughly 29 percent of global wheat exports, are negotiating, and a breakthrough could lead to a three-week cease-fire.

Argentina's draft and government policies have aided soybeans, according to the dealer.

Argentina, the world's largest exporter of processed soy products, is considering raising taxes on soybean oil and meal exports as part of a plan to combat sky-high inflation, according to a government source quoted by Reuters on Wednesday.

According to the head of the feed makers' association SNIA, French producers of livestock feed have asked the government to guarantee a certain volume of grain is available for their sector in the face of rising export demand linked to the Ukraine conflict.

According to a Mumbai-based grains dealer, a sharp drop in crude oil prices this week has forced traders to reassess demand for biofuels and the likely diversion of food for fuel. Oil prices rose on Thursday after the International Energy Agency predicted a loss of 3 million barrels per day (bpd) of Russian crude and refined products beginning in April.