Chicago wheat futures fell on Tuesday, after Russian President Vladimir Putin expressed readiness to unlock grain cargoes blocked in Ukrainian ports.
Corn also ticked lower, while soybeans edged up.
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 fell 2.35% to $11.3-1/4 a bushel. Corn Cv1 slipped 0.87% to $7.7-1/2 a bushel and soybeans Sv1 rose 0.52% to $17.41-1/4 a bushel.
"Wheat fell because of the (Putin) comments. The high prices had quite some 'war premiums,'" said a China-based trader, referring to the CBOT grains price rally pushed by the Russia-Ukraine war.
The conflict between the world's two main grains producers and exporters since late February have roiled the global grains markets and stirred increasing worries over a global food crisis.
Recent talks aimed to find ways to lift the blockade of grain ports in Ukraine have improved sentiment on exports from the Black Sea region.
Putin said on Monday that Russia was ready to facilitate the unhindered export of grain from Ukrainian ports in coordination with Turkey, according to a Kremlin readout of talks with President Tayyip Erdogan.
The remarks were made after Putin told leaders of Germany and France that Russia was willing to discuss ways to resume Ukrainian grain shipments over the weekend.
"The precondition (of unlocking Ukraine grains exports) is that sanctions on Russia would get lifted," cautioned another China-based trader.
The war has also disrupted wheat planting in Ukraine, which could impact its harvest.
The winter wheat harvest in the Ukraine-controlled area is expected to reach 20.1 million tonnes in 2022, down from about 32.2 million tonnes for the overall wheat crop in 2021, Ukrainian state weather forecasters said on Monday.
India has received requests for the supply of more than 1.5 million tonnes of wheat from several countries that need the staple to overcome shortages triggered by the invasion of Ukraine by Russia, trade and government sources said on Monday.
The South Asian country has banned private exports of wheat.
Strategie Grains has raised its monthly forecast for this year's European Union sunflower seed harvest to 10.9 million tonnes from 10.7 million tonnes earlier, the consultancy said in a report.
Commodity funds were net buyers of Chicago Board of Trade corn, wheat, soybean and soymeal futures contracts and net sellers of soyoil on Friday, traders said.
World share markets rose on Monday and the dollar was anchored at five-week lows on bets of a possible slowdown in U.S. monetary tightening and after an easing of Covid-19 restrictions in China.