Wheat Soars in Risk to Food Inflation as India Restricts Exports

The government will suspend overseas sales to manage its food security, according to a notification dated May 13. This drew criticism from the agriculture ministers of the Group of Seven nations, who said that such measures make the world’s crisis worse.

Benchmark futures rose as much as 5.9% to $12.47 1/2 a bushel in Chicago, the highest in two months. Prices have surged about 60% this year, increasing the cost of everything from bread to cakes and noodles.

The surprising thing is that India isn’t even a prominent exporter on the world stage. The fact that it could have such a major impact underscores the bleak prospect for global wheat supplies. War has crippled Ukraine’s exports, and now droughts, floods and heat waves threaten crops in most major producers.

Global prices of different wheat varieties climbed. Hard red winter futures surged by 70 cents, the exchange limit, to $13.52 a bushel, the highest price since 2008, while spring wheat was up more than 4%. Corn increased 2.2%. $S&P 500 Index(.SPX.US)$ $Dow Jones Industrial Average(.DJI.US)$ $Nasdaq Composite Index(.IXIC.US)$ $MGP Ingredients(MGPI.US)$ $Post Holdings(POST.US)$ $Adecoagro(AGRO.US)$ $Bunge(BG.US)$