Wheat slips amid efforts to ease Black Sea export disruptions

By Tom Polansek

CHICAGO, Sept 25 (Reuters) - Chicago Board of Trade wheat futures fell on Friday amid diplomatic efforts to ease disruptions to Black Sea grain exports caused by Russia's war on Ukraine, two major grain suppliers.

Prices also came under pressure from early losses in corn and soybean futures after a US-China summit failed to immediately deliver concrete announcements on additional Chinese purchases of American crops, analysts said.

The most actively traded wheat contract fell below the $7 per bushel threshold for the first time in a month before trimming losses as corn and soybean futures recovered.

"Wheat was smacked down hard overnight on talk of a new Black Sea wheat corridor, and fresh chart selling," said Charlie Sernatinger, executive vice president of broker Marex.

CBOT wheat closed down 3-3/4 cents at $7.03-1/4 per bushel after setting the lowest price since August 19 at $6.83-1/2.

Attacks in Russia's war on Ukraine war have crippled grain exports from the Black Sea region.

Ukrainian President Volodymyr Zelenskiy said India, Turkey, Egypt and other Middle Eastern countries were taking part in talks on unblocking shipping. Turkey submitted proposals to Moscow on the security of shipping, but there were no substantive negotiations under way, Russian news agency Interfax reported.

Russia has intensified air strikes across Ukraine in recent months using ballistic missiles and jet-powered drones that have hit businesses, logistics networks, Black Sea port facilities and civilian infrastructure.

"Turkey, Ukraine and others have been floating proposals, but there's no sign of Russian agreement or any meaningful progress towards restoring shipping," said Andrey Sizov, head of consultancy Sovecon.

Still, some traders focused on the diplomatic push for shipments.

"Even the prospect of any improvement to said flow coming to fruition may trigger nerves for managed money traders holding big speculative length," said Mike Castle, senior commodities economist for consultancy StoneX

Traders also monitored the US-China summit. The US is expected to release details on the outcome of trade negotiations on Monday, US Trade Representative Jamieson Greer said.

CBOT corn ended up 3/4 cent at $5.28-1/4 per bushel after dropping earlier to a one-month low of $5.14-3/4. CBOT soybeans closed up 1-1/2 cents at $13.19 per bushel.