Wheat prices soared to a new high in European markets


Posted on 16 May 2022


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Wheat prices soared to a new high in European markets on Monday after India opted to halt exports due to a heat wave that harmed output. As the Euronext market started, the price soared to 435 euros ($453) per tonne, breaking the previous high of 422 euros set on Friday. Since Russia's February invasion of agricultural powerhouse Ukraine, which previously accounted for 12% of global exports, global wheat prices have risen due to supply concerns. The increase has fueled global inflation and generated fears of hunger and social upheaval in poorer countries, which has been worsened by fertiliser shortages and bad crops. Wheat and flour prices have risen 20 to 40 percent in some parts of India in recent weeks, according to Commerce Secretary BVR Subrahmanyam. Some farmers were selling to traders rather than the government due to the sharp surge in world prices. This made the government concerned about its buffer stock of about 20 million tonnes, which had been reduced by the pandemic and was needed to feed millions of poor families and avert famine.


Key Points


  • Wheat prices soared to a new high in European markets on Monday after India opted to halt exports due to a heat wave that harmed output. 

  • As the Euronext market started, the price soared to 435 euros ($453) per tonne, breaking the previous high of 422 euros set on Friday. 


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