HAMBURG - Chicago wheat and soybeans fell on Thursday following reports of progress in talks to create a safe corridor for ships carrying Ukraine's cereal and oilseed exports.
Fears of a potential global recession also weighed on the market.
Chicago Board of Trade's most active wheat fell 0.4% to $8.07-1/4 a bushel by 1155 GMT. Corn was flat at $5.95-1/4 a bushel, while soybeans declined 1.3% to $13.34 a bushel.
Wednesday's talks in Istanbul delivered elements of a possible deal on a Ukrainian shipping, Russia's foreign ministry said.
"Wheat, corn and soybeans are falling today on reports of possible progress in negotiations to create a safe sea corridor for Ukrainian grain and oilseed exports plus wider economic concerns about a possible recession and demand destruction," said Matt Ammermann, StoneX commodity risk manager.
"Ukraine really needs high-volume ocean shipping to move out its grain exports, a sea channel would be a major development, perhaps enabling Ukraine to put large volumes of grains into the world market and clear its storage as its harvest arrives.”
Ukraine's exports were slashed after Russia's invasion in February closed seaports.
"Markets are not slamming down, partly because the detail is still awaited and enormous issues still have to be resolved in the shipping talks," Ammermann said. "I remain sceptical of a rapid agreement on shipping."
Russia has a large harvest approaching and may be interested in normalising shipping in the Black Sea to move its exports out, he said.
"Markets are also being weakened by fears central banks will raise interest rates to combat inflation and so raise the threat of a world recession, which would cause demand destruction for grains and soybeans," Ammermann added.
Falls were limited by forecasts of sunshine and high temperatures in the U.S. Midwest in the coming days, unwelcome for corn, he added.
(Reporting by Michael Hogan in Hamburg, additional reporting by Naveen Thukral in Singapore, editing by Aditya Soni)