QUOTE AND NEWS
Agrimoney.com  8 hrs ago  Comment 
Soybean futures rise, a little, while sugar futures slump after Brazil sees a record start to the season
Agriculture Online  Apr 26  Comment 
News News › Crops Byline: Chuck Abbott Economists agree that agricultural research more than pays for itself. Nearly a decade...
Agrimoney.com  Apr 26  Comment 
Prospects for winter sown crops have lifted, thanks to favourable weather in the bloc's top wheat growers
The Economic Times  Apr 26  Comment 
Wheat procurement was 5 million tonnes in the year-ago. Food Corporation of India (FCI) and state agencies undertake wheat procurement at the support price.
The Hindu Business Line  Apr 25  Comment 
Reportedly, there has been manipulation of supply of jute bag and its price
The Economic Times  Apr 22  Comment 
Punjab on Friday released Rs 2,612.50 crore to pay for wheat procured during the current rabi marketing season, offering relief to farmers who were worried about payments because of central bank curbs on cash credit limit.
Agrimoney.com  Apr 21  Comment 
A fall in Canada's spring wheat area will be offset in part by durum and winter wheat acres. Canola sowings will, unexpectedly, fall, StatsCan says
Agrimoney.com  Apr 21  Comment 
Continued fund buying drives soybean markets ever higher, but corn and wheat take a breather after their recent rally
Agrimoney.com  Apr 20  Comment 
Kernel successfully boosts export capacity, as analysts upgrade Ukrainian wheat prospects despite bad start to the season
Agrimoney.com  Apr 20  Comment 
Soybean futures hit a fresh eight-month high in early deals... corn futures a four-month top... wheat takes gains this week above 6%. Palm gains most




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This article describes a specific commodity. For grains prices in general, see the article on Grains Prices. For specific futures contracts, see the below section on wheat futures contracts.

Wheat is a commodity input that goes into many food products, from pasta to bread to baked sweets. Wheat futures on Chicago's commodities exchange more than doubled in September 2007 compared to the previous year, going from $3.95 a bushel to nearly $9. What's driving up wheat prices is a matter of simple supply and demand, as bad weather, including a spate of hurricanes, have created shortages of this important grain.

A more fundamental problem compounding the recent effects of bad weather is that farmers are increasingly switching to grow corn because of the skyrocketing demand for the ethanol-producing grain.

The chart at left shows continuous front-month futures contracts for Wheat traded on the Chicago Board of Trade (CBOT) in cents per bushel.

Map of Where Wheat is Produced

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Companies Suffering from Rising Wheat Prices

Wheat is a truly global commodity input, as it is used for bread and pasta in Western countries and noodles in Asian countries. When wheat prices rise, companies are faced with the dilemma of taking a hit to gross margins or passing on cost increases to the consumer, which often decreases demand.

  • Sara Lee (NYSE:SLE) and Campbell Soup (NYSE:CPB) are both producers of baked goods, especially bread. Wheat flour is the main ingredient in most baked goods. Sara Lee had acquired instruments to hedge against rising wheat prices, but prices rose above expected increases.
  • Kellogg (NYSE:K), General Mills (NYSE:GIS), Kraft Foods (NYSE:KFT), PepsiCo's (NYSE:PEP) Quaker Foods, and Nestle (Public, VTX:NESN) are all major producers of breakfast cereals, most of which are made partly from wheat.
  • Kraft Foods and PepsiCo's Frito-Lay are the largest multinational snack companies. Many of the products manufactured by these companies, including corn chips, cookies, and crackers, are made primarily of grain products.

Japanese Companies

Wheat Futures Contracts

See Also

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