Traders claimed India has inked contracts to export over 500,000 tonnes of wheat in recent days, capitalizing on a dramatic rise in international prices and signaling a significant increase in overseas sales from the world’s second-largest wheat producer.
Last week, traders said they had received queries from clients looking for alternatives to Black Sea shipments, as Russia’s invasion of Ukraine endangered supply from two suppliers that account for 30% of global wheat exports combined.
India has massive wheat inventories after five consecutive record yearly yields, and traders are eager to profit from any export opportunities. Unless global prices are high, a government-guaranteed high domestic price tends to discourage exports.
On Monday, benchmark European wheat prices rose beyond 400 euros ($435), and benchmark wheat prices in Chicago settled at their highest in 14 years.
This year, India is expected to export a record 7 million tonnes of wheat.
Wheat was previously sold between $305 to $310 per tonne FOB by traders.