PARIS: Euronext wheat slid more than 3% on Wednesday as traders booked profits after a sharp rally triggered by fears of a military conflict between major grain exporters Russia and Ukraine.

March futures on Paris-based Euronext settled down 9.50 euros, or 3.3%, at 281.25 euros ($317.42) a tonne, pulling back from Tuesday’s four-week high of 291.75 euros.

The filling of a chart gap opened during Tuesday’s jump added technical impetus to Wednesday’s slide, traders said.

Chicago wheat was also down around 3%.

Investors are watching developments in the crisis over Ukraine after being unnerved by signs of military escalation in recent days.

The United States delivered written replies on Wednesday to Russian security demands, while talks took place in Paris between representatives from Russia, Ukraine, France and Germany.

“A risk premium to European prices has been added this week in case Russian and Ukrainian wheat exports are disrupted by any actual fighting,” one German trader said. “But the news from the region is quieter today.”

Traders said grain trade appeared to be unaffected so far. “Ukrainian and Russian wheat exports continue to be shipped out so I think markets are pausing to see how the situation develops,” the trader added.

European traders were also assessing a purchase by Algeria put at 60,000-80,000 tonnes in a tender for small ports.

Initial reports suggested state grains agency OAIC had been ready to accept offers of French wheat, signalling an easing in a diplomatic row between Algiers and Paris, but that the purchase was likely to be sourced from the Black Sea region.

“French wheat was accepted which is a positive step, but it was too expensive against Black Sea origins,” another trader said.

In Germany, standard 12% protein wheat for January onwards delivery in Hamburg was offered for sale at about 10 euros over Euronext March with purchase interest at around 8 euros over.