PARIS: Euronext wheat fell by over 3% on Tuesday, tracking heavy losses in Chicago as diplomatic discussions to reopen Ukrainian ports and rain relief for US and European crops fueled liquidation after strong gains this year.

Technical pressure as Euronext prices fell below the 400 euro threshold encouraged the downward movement, traders said.

September milling wheat on Paris-based Euronext settled down 3.6% at 392.25 euros ($420.92) a tonne.

It earlier fell to 389.25 euros, its lowest since May 5.

Chicago wheat was down around 5% as the market resumed following Monday’s US Memorial Day holiday.

“There is heavy momentum selling led by the US market,” a futures dealer said.

Comments by Russian President Vladimir Putin and leaders of other countries about a possible corridor for Ukrainian grain shipments weighed on futures, although traders remained cautious about the likelihood of a deal given Moscow’s call for sanctions to be lifted in return.

After Putin said on Monday that Russia was ready to facilitate the export of grain from Ukrainian ports in coordination with Turkey, French President Emmanuel Macron said on Tuesday he had offered to Putin to draft a UN resolution for releasing grain from Ukraine’s ports.

“Nevertheless, doubts remain about the reality on the ground, and about the conditions that the Russian president could still impose to authorize these exports,” consultancy Agritel said in a note.

Rainfall in parched winter wheat belts in the southern US Plains and in western Europe also encouraged some selling ahead of closely watched US crop data later on Tuesday, traders said.