QUOTE AND NEWS
Agrimoney.com  12 hrs ago  Comment 
Canada's canola inventories fell last year, but not as much as investors expected, despite a strong export pace. Wheat stocks come in below forecasts
Reuters  Feb 4  Comment 
Libya's internationally recognised government said on Wednesday it had started tapping into its strategic wheat reserves to ensure bread supplies and overcome what it called a "flour crisis".
Benzinga  Feb 4  Comment 
Wheat futures are trading higher Wednesday after Tuesday's move higher. March Chicago Wheat is trading at 518 1/4, up 4 1/2 cents. March Kansas City Wheat is trading at 562 1/2, up 3 1/2 cents. Chatter that Egypt bought 300,000 tons of wheat...
Benzinga  12 hrs ago  Comment 
Agrimoney.com  Feb 4  Comment 
The dollar is steady in early deals, and oil lower - ending the boost to ag prices from those factors. But demand signals help wheat extend headway
Benzinga  Feb 3  Comment 
March Corn is trading at 385 1/4, up 15 1/2 cents. July Corn is trading at 400 1/4, up 14 3/4 cents. March Chicago Wheat is trading at 513, up 20 1/4 cents. March Kansas City Wheat is trading at 556 3/4, up 22 cents. © 2015 Benzinga.com....
The Hindu Business Line  Feb 3  Comment 
Prospects for wheat exports in the new marketing season are turning bleak on falling global prices even as the country is seen headed for a bumper output this year. The recent fal...
Agrimoney.com  Feb 3  Comment 
...at least, for hard red winter wheat crops, for which condition ratings drop in major growing states. Will the decline be reflected in prices?
Benzinga  Feb 3  Comment 
Wheat futures are trading higher Tuesday after Monday's decline. March Chicago Wheat is trading at 496 3/4, up 4 cents. March Kansas City Wheat is trading at 538 1/4, up 3 3/4 cents. USDA weekly export inspections for wheat were 394,029 tons,...
Agrimoney.com  Feb 3  Comment 
Wheat futures start firm, helped by the emergence of a series of tenders from importers. A rebound in crude prices boosts corn and soyoil futures
The Times of India  Feb 3  Comment 
India looks likely to harvest a bumper wheat crop this year, its eighth in a row to exceed demand, possibly encouraging the government to allow exports from overflowing grain bins.
The Hindu Business Line  Feb 3  Comment 




RELATED WIKI ARTICLES
 


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

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

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki