Agricultural Supply and Demand Outlook
Wheat
• International wheat prices increased steeply in May in response to the
announcement of a wheat export ban by India. As exports from
Ukraine remain hindered by war disruptions, and after India's larger
wheat shipments in recent months played an important role in
partially offsetting lost exports from Ukraine, the country's export
restriction exacerbated global availability uncertainty. Against that
background, concerns over crop conditions in Argentina, Canada and
the United States of America, raised the Argentina (Up River, f.o.b),
Canada (St. Lawrence, CWRS) and benchmark United States of
America (US No. 2, Hard Red Winter) quotations by 11, 8, and 5
percent, respectively, month on month.
• International wheat prices continued to increase, while prices of
coarse grains declined.
• As of 13 May 2022, the Government of India have prohibited exports
of wheat to help ensure adequate domestic supply, including the large
quantities of wheat needed to run various welfare schemes amid
increasing global wheat prices as well as lower than previously
anticipated 2022 wheat production, due to a heatwave in March.
However, some exports will be allowed, in order to honor contracts
where irrevocable letters of credit have already been issued or by
special permission of the government at the request of neighbouring
and food-deficit countries to ensure their food security.View entire presentation