Chicago wheat futures climbed on Tuesday as traders assessed developments surrounding the Ukraine peace talks.

The ‍most-active wheat contract ‍on the Chicago Board of Trade (CBOT) was 0.2% higher at $5.14-3/4 a bushel ​by 1145 GMT.

Hopes of an end to the war in Ukraine were dented on Monday after Russia ⁠accused Kyiv of trying to attack President Vladimir Putin's residence, pledging retaliation in response. Ukraine dismissed the ⁠claim, calling ‌it a lie intended to derail peace talks.

A resolution of the conflict that has lasted for nearly four years would likely weigh on wheat prices, ⁠as the removal of war-related shipping risks would reduce export costs and increase access to more Ukrainian ports for wheat shipments.

Ukraine is one of the world's biggest exporters of wheat and corn.

"While further disruption in the Black Sea region would add some ⁠upwards pressure to prices, this ​risk is largely priced in," said Claire Adams, agricultural analyst at Bendigo Bank Agribusiness.

"If peace talks were to progress ‍successfully, the market would likely have a bearish tone, however, due to the understanding that recovery of the infrastructure ​damage in the area will take some time, the impact may not be immediate," she added.

Meanwhile, agricultural consultancy

Sovecon

on Tuesday raised its 2025/26 Russian wheat exports forecast by 0.4 million metric tons to 44.6 million tons.

Trading remained light after the Christmas holiday and as the year-end approached, with many traders booking profits and exiting the market.

CBOT soybeans climbed 0.3% to $10.66-1/2 a bushel. Corn was flat at $4.42-1/4 a bushel.

Traders are watching China's military drills around Taiwan, which test Beijing's ability to cut off external support and Taiwan's defence resolve. These tensions are seen ⁠as a risk to the U.S.-China trade truce. China is ‌the world's largest soybean buyer.

Soybeans and wheat continued to face pressure from abundant global supplies, while strong U.S. corn demand helped stabilise corn futures.

"A firming crude oil price provided some ‌underlying support for ⁠soy," said Adams.

(Reporting by Daphne Zhang, Ella Cao and Lewis Jackson in Beijing, and Sybille de ⁠La Hamaide in Paris; Editing by Subhranshu Sahu and Vijay Kishore)