CORN - Wheat drops to lowest since February on Russia-Ukraine grain export deal

Wheat futures plunged to their lowest levels in five months on Friday after Russia and Ukraine finalized an agreement to resume Ukrainian grain shipments from Black Sea ports that have not operated since the start of the war.

U.S. grain traders said the deal should ease some concerns about rising food prices , since Russia and Ukraine are both among the world's leading exporters of wheat.

The news contributed to a sharp drop in wheat prices ( W_1:COM ), with the most-active CBOT September contract -5.9% at $7.59 per bushel, the lowest settlement for a most-active contract since February 3.

December corn ( C_1:COM ) closed -1.6% at $5.64 1/4 per bushel, and November soybeans ( S_1:COM ) finished +1.1% at $13.15 3/4 per bushel, bouncing after sliding to a six-month low $12.88 1/2.

ETFs: ( NYSEARCA: WEAT ), ( CORN ), ( SOYB )

Traders said lower wheat prices reflected the expectation that Russian wheat soon will be widely available to world markets, while corn prices are steadying because Ukraine is a major exporter of corn, and Ukrainian wheat or corn likely will not be ready for export any time soon, regardless of the agreement.

The Russia-Ukraine deal had little effect on soybean futures Friday, with traders reportedly focused on how weather in growing areas may affect the U.S. crop.

Confidence that the deal actually will be implemented may be helped by Russia's resumption of at least some gas flows on the Nord Stream pipeline .

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