India has banned wheat exports due to the sudden rise in cereal prices on the world market. The information is from the German news agency Deutsche Welle.

According to the country, the ban on the export of cereals is to avoid risks to food security.

Price shoots

On Monday (16), in the morning, wheat futures contracts traded on the Chicago Stock Exchange (CBOT) resumed trading with sharply higher prices.

About a month ago, the Asian country had guaranteed it would meet global demand amid the war in Ukraine. India intended to ship a record 10 million tons of wheat this year.

Prices in Chicago have risen to their highest levels since March 8 this year.

Analysts believe that the market should take some time to adapt to the new tightening of supply. It seems, however, previous agreements by the Indian government and private sector with other countries must be fulfilled, as is the case in Egypt.

At 11 a.m., contracts with delivery in July 2022 were quoted at $12.38 1/2 per bushel, up 0.61 cents, or 5.18%, from the previous close.

September 2022 delivery contracts are at $12.39 3/4 per bushel, up 0.58 cents from the previous close, or 4.97%.

G7

This weekend, India's move was criticized by G7 agriculture ministers meeting in Germany, who said the Indian government's decision will "exacerbate the crisis" in global grain supply caused by the Ukraine war.

"If everyone starts restricting exports or closing their markets, the crisis will worsen and it will also hurt India and its farmers," said German Minister Cem Özdemir.

Source: Canal Rural