Indian Wheat Hits Record High, Panic In Rice Market

Indian wheat futures have closed at a record high of Rs 1,402.20/100kg, close to USD300/tonne, after the government finally said that they would release 500,000 MT of wheat from state-owned stocks onto the market.

The wheat however will only be up for tender at prices above the current cash market, so they might as well not 'offer' it at all. Additionally, I don't see what use half a million tonnes is to a country with a projected annual consumption of 77 million tonnes of the stuff.

Cash wheat prices have risen by 10% this month alone, trading at around Rs 1,320/100kg yesterday, equivalent to USD280/tonne).

The country's inept government is now under heavy pressure to relax strict regulations on quality issues to allow Indian millers to look to the international market for their requirements.

To put them under further pressure a story on Bloomberg today says that the country could be forced to become a net rice importer for the first time in 21 years, after this season's monsoon disaster slashed summer rice production.

Bloomberg: India May Import Rice, Fueling ‘Panic’

Who was it who's sudden entry into the world wheat import market in 2006/07 was the precursor for the start of the biggest wheat rally in history again?