Wheat falls as markets monitor Black Sea export prospects

BEIJING, Sept 28 (Reuters) - Chicago wheat fell on Monday as traders weighed whether diplomatic efforts could ease disruption to Black Sea grain exports from Russia and Ukraine, two of the world's biggest grain suppliers. Corn fell and soybeans gained.

FUNDAMENTALS

* The most-traded wheat contract on the Chicago Board of Trade (CBOT) was down 0.3% at $7.04-1/2 a bushel by 0109 GMT. CBOT corn fell 0.3% to $5.26-1/2 a bushel, while soybeans rose 0.2% to $13.21 a bushel.

* Renewed diplomatic efforts to end the Ukraine war kept attention on the outlook for Black Sea agricultural exports.

* Ukrainian President Volodymyr Zelenskiy said on Friday that India, Turkey, Egypt and other Middle Eastern countries were taking part in talks on unblocking shipping in the Black Sea.

* Turkey has submitted proposals to Moscow on the security of shipping, but there were no substantive negotiations under way.

* Traders hoped a truce could lead to a recovery in cargo movements that are at a near standstill in the Black Sea due to heavy attacks on ships and port infrastructure by both sides.

* Russia could quickly restart up to 80% of its grain terminal capacity in the Black Sea and Sea of Azov if diplomatic efforts to halt mutual attacks by Russia and Ukraine result in a ceasefire, a Reuters analysis of industry data showed

* Top wheat importers in Asia, the Middle East and Africa that rely on the Black Sea region for grain have struggled to secure supplies.

* However, continued attacks on ports and vessels tempered expectations of a recovery in grain shipments.

MARKET NEWS

* Oil prices rebounded more than 1% after US President Donald Trump rejected a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz, keeping tensions in the Middle East elevated.O/R