by Martin Armstrong
Armstrong Economics
ASIA:
India has signed contracts to export about 500,000 tonnes of wheat in recent days, traders said, cashing in on a sharp rally in international prices and signaling a big uptick in overseas sales from the world’s second biggest producer of the grain. Traders said last week they had received inquiries from buyers seeking alternatives to Black Sea cargoes as Russia’s invasion of Ukraine threatened supplies from two producers which together account for 30% of world wheat exports. After five consecutive record annual crops, India has large wheat inventories, and traders are keen to capitalize on any export opportunity. A high domestic price guaranteed by the government tends to deter exports unless world prices are high.