India’s export embargo sends EU wheat to an all-time high

European wheat reached an all-time high on Monday when India said it was closing wheat export doors to cool local prices and ensure its supply as a burning heat flux to reduce output.

The benchmark September milling wheat on the Paris-based Euronext rose 5.9% to 441.25 euros ($ 459.43) after touching 443.25 euros by 1550 GMT, hitting nine tons short of the all-time high for the 450 front-month euro deal briefly in early March.

Wheat was also the most traded commodity at the Chicago Board of Trade, up 5.9%, at its daily limit.

India banned wheat exports on Saturday as heatwaves reduced production and raised domestic prices, with the government setting a policy U-turn after maintaining it a few days ago and still targeting a record 10 million tonnes of exports that would help offset Ukraine’s declining supply.

Concerns about the ongoing dry weather in France are expected to have a negative impact on winter crop yields, and prices in the United States are also supporting.

Many parts of France, the European Union’s largest grain producer and exporter, were hit by torrential rains on Monday night but that was not enough, the head of France’s largest farm union said.

Crop data released on Friday showed that the condition of French wheat and barley crops has declined as the dry weather continues.

“The EU and the United States have suffered from crop failure. Other sources are too small to move needles. The biggest wheat importers are becoming more and more dependent on wheat from Russia, with all the uncertainty,” said Carlos Mera, Rabobank’s agricultural product. Head of research.