PARIS: Euronext wheat futures fell sharply on Monday as the prospect of renewed negotiations between Ukraine and Russia as well as the return of rain in dry US and European grain belts tempered supply concerns, traders said.

The run-up to widely followed US planting and stocks data on Thursday was also encouraging participants to adjust positions after a record-breaking rally in the days following Russia’s invasion of Ukraine.

May milling wheat on Paris-based Euronext unofficially closed down 12.75 euros, or 3.3%, at 368.50 euros ($404.87) a tonne, near an earlier one-week low.

Chicago wheat was down over 4% in US trading, further pressured by a stronger dollar.

The month-old conflict in Ukraine has rattled grain markets by stalling massive supplies of wheat, corn and sunflower oil through the Black Sea, pushing Euronext wheat prices to record highs above 400 euros.

However, face-to-face talks between Russian and Ukrainian delegations due to take place in Turkey this week have revived hopes of progress towards a ceasefire.

Signs of continuing exports of Russian wheat as well as demand for Indian supplies have also eased immediate fears of a global supply shortfall.

In France, the loading schedule at ports was lighter after an upturn earlier this month, with traders watching to see if recent reported demand for French wheat would translate into more shipments to replace Ukrainian grain.

Visiting Egypt, one of the world’s biggest wheat importers, France’s finance minister said Paris would help ensure Egypt had enough wheat in the coming months, adding there would be talks between the two countries over wheat prices.

Rain since last week in some drought-affected parts of the US Plains along with rain forecast this week in France and elsewhere in Europe after a dry end to winter were also tempering crop concerns.