PARIS: European wheat futures eased on Friday after a rally this week to two-month highs, with traders weighing the risk of war escalation in Ukraine, a swelling harvest in Russia and investor fears of an economic recession.

December wheat on Paris-based Euronext settled down 0.9% at 346.25 euros ($336.07) a tonne.

On Thursday it reached its highest since July 11 at 350.25 euros. Over the week, the contract was up 3.7%. Wheat markets rallied this week after Moscow’s moves to mobilise more troops and back referendums on joining Russia in occupied regions of Ukraine fuelled concern about further disruption to vital Black Sea grain trade.

However, rising estimates of what is expected to be a record Russian wheat harvest and ongoing grain shipments from Ukraine through a Black Sea corridor tempered supply worries.