Globally wheat has seen a six percent gain and thus Indian prices are getting impacted as well. The major reason for this is that Russia has withdrawn from the Black Sea export agreement. Nearly 9.5 million tons of grains which include wheat, corn, sunflower, barley, mustard, soya, etc. have been exported via the Black Sea since the month of July.

Share Market Live

NSE

After the statements from Russia, there are statements from the United Nations and Turkey saying that they will go ahead with the grain export deal but with Russia withdrawing the uncertainties have risen.

Wheat prices hit an all-time high in the global markets at around $13.6 per bushel in the month of March. Since then the wheat prices have come off by 25 percent. However, the last overnight trade has been nearly six percent on the higher side.

Also Read: Gold prices fall to nearly three weeks low in choppy trade

The Indian Market

The Indian output has been lower this time around too and because of the higher prices, there has been crop lying with the private trade rather than in the government buffer stock.

In the open market, sources have told CNBC-TV18 that there is just about one to two month of stock. Wheat prices have gained by nearly 15 percent in the last six months in the Indian market and there seems to be no respite for the next two or three months further.

It is noteworthy that India banned wheat export after there was a jump-up in the international markets and the domestic availability was also declining.