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Chicago wheat jumps to two-month high as India bans exports

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Chicago wheat climbed to a two-month high on Monday after India banned exports of the grain as a heat wave crimped its output, sending domestic prices to a record high and curbing global supply at a time when Black Sea shipments remain disrupted.

But India would still allow exports backed by already issued letters of credit and to countries that request supplies to meet food security needs, the country said on Saturday.

Corn and soybeans also edged higher.

FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) rose as much as 6% to $/2 a bushel in early trade, the highest since March 9. It was up 5.6%, as of 0234 GMT.

* CBOT corn climbed 2% to $7.97 a bushel, while CBOT soybeans gained 0.7% to $/4 a bushel.

* Global buyers were banking on supplies from the world’s second-biggest wheat producer after exports from the Black Sea region plunged following Russia’s Feb. 24 invasion of Ukraine. Before the ban, India had aimed to ship a record 10 million tonnes this year.

* India is the only major supplier of wheat at this time of year, and its exports of the grain have surged since Russia invaded Ukraine in late February.

* Any agreements by Egypt’s government to purchase Indian wheat will not be affected by an export ban announced by New Delhi, Egypt’s supply minister said.

* Pressed into emergency service by the blockade of Ukraine’s seaports by Russian invaders, neighbouring Romania is racing against time to move Ukrainian grain to global markets before the next harvest triggers bottlenecks.

* Crop conditions for French wheat and barley crops declined sharply in the week ended May 9, as dry weather persisted in the EU’s biggest grain-growing country.

MARKET NEWS
* Asian share markets were struggling to sustain even a minor rally on Monday after shockingly weak data from China underlined the deep damage lockdowns were doing to the world’s second-largest economy. Source: Reuters (Reporting by Enrico Dela Cruz in Manila; Editing by Sherry Jacob-Phillips)

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