CBOT wheat jumped around 5% in morning trade on Monday after India announced it would restrict wheat exports from the country with immediate effect to manage domestic supplies of the grain. The announcement comes as a major surprise to the market as the country previously indicated a push for higher exports after supply losses from Ukraine pushed up prices in the global market. In fact, India was one of the few countries where the USDA was expecting wheat exports to increase and help fill the supply gap. Over recent weeks, a severe heatwave in large parts of India has created supply risks for the country, with production estimates for 2022/23 revised downwards recently, pushing the administration to take harsh measures. India will continue to send some wheat to neighbouring countries, although this would also need government approval and depend on requirements and availability.
