Russia has become an increasingly important force in the global supply of grains. Russia provided 14.5% of global exports from the 2009-10 crop, according to the Food and Agriculture Organization. Moreover, it has played a key role in meeting rising import demand, exporting 17.5 million metric tons of wheat, up from less than one million in 2000-01 and the move to ban export has reignited fears that nervous governments will begin hoarding their own supplies, potentially causing a shortage. Nations that already are struggling to feed themselves are scrambling to lock in deliveries.
This bull run (wheat prices almost doubled globally in last 2 months) definitely will have some impact on India and ncdex prices have started to reflect that. However Govt is under tremendous pressure and with bumper crop and stock in India, prices here are less likely to go up. Now that gives India a natural advantage in International market. We can export so called surplus wheat (as media highlighting every day that wheat is rotting all across India due to poor warehousing).
Now the big question is - How wise it'll be open export window for Wheat???
Will share my thoits on that in my next post.. till then happy trading.. enjoy the weekend :)
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