Chicago wheat falls as traders assess Ukraine peace talks developments

BEIJING, Dec 30 (Reuters) - Chicago wheat futures slipped for a third straight session on Tuesday, as traders assessed developments surrounding the Ukraine peace talks and abundant global supplies kept the market under pressure.

Corn prices remained steady in light trading, while soybeans posted slight gains.

FUNDAMENTALS

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 eased 0.05% to $5.12-3/4 a bushel by 0151 GMT.

CBOT soybeans Sv1 climbed 0.12% to $10.64-3/4 a bushel. Corn Cv1 was flat at $4.42-1/4 a bushel.

Positive signals emerged over the weekend from talks between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy aimed at ending the war in Ukraine.

However, those hopes were dented on Monday after Russia accused Ukraine 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.

An end to the war in Ukraine would likely weigh on wheat prices, as the removal of war-related shipping risks would reduce export costs, while increasing access to more Ukrainian ports for wheat shipments.

Traders are also 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.

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

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

MARKET NEWS

Oil prices retreated a touch early on Tuesday after rising more than 2% in the previous session, partly driven by spillover from a pullback in precious metals even as escalating Russia–Ukraine tensions left markets grappling with supply disruption fears. O/R