International wheat prices jumped on Monday days after India put a ban on the export of the crop. The price jumped to 435 euros ($453) per tonne as the European market opened.
US and European wheat futures climbed by nearly 6%, with the Chicago market - the global benchmark - earlier reaching its daily trading limit and Paris prices approaching all-time highs.
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By end of its overnight trading session, Chicago futures were up 4.9%, off an earlier two-month peak.
On Saturday, India, the world's second-largest wheat producer, said that it was banning exports as a heatwave hit the country’s wheat crops, taking domestic prices to a record high.
The surge in price also comes as global agricultural markets are under severe stress due to Russia's invasion of Ukraine, which is a principal wheat producer.
The ban has trapped some 1.8 million tonnes of grain at Indian ports, leaving traders facing heavy losses if they sell onto a weaker domestic market, according to reports.
Wheat has contributed to record highs this year for global food prices as measured by the UN’s food agency, with Russia`s invasion of Ukraine upending the market by halting massive shipments from Ukrainian sea ports.
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Facing spikes in food inflation, other nations have also sought to preserve domestic supply, with Indonesia banning exports of palm oil at the end of April.
The Indian export ban comes as harsh weather, including drought in parts of the United States and France, threatens production potential in other major exporting countries.
(With agency inputs)
