Benzinga  Oct 14  Comment 
December Chicago Wheat is trading at 422 1/2, up 6 1/2 cents/bushel. March Chicago Wheat is trading at 440 1/4, up 5 3/4 cents/bushel. December Kansas City Wheat is trading at 419, up 5 cents/bushel. Chatter about global demand for U.S. wheat...
Agrimoney.com  Oct 14  Comment 
Eygpt's grain authority buys wheat from Romania and Russia. But a losing offer of US wheat catches market attention - and sends futures soaring
Agrimoney.com  Oct 13  Comment 
Wheat futures soar 5%, as big importers - and fund money - emerge at time when US supplies are "the cheapest in the world". But cattle prices tumble
Benzinga  Oct 13  Comment 
December Chicago Wheat is trading at 408 1/2, 11 3/4 cents/bushel. March Chicago is trading at 427 , up 10 1/2 cents/bushel. December Kansas City Wheat is trading at 407 1/4 , up 8 3/4 cents/bushel. December Corn is trading at 340 3/4,...
Agrimoney.com  Oct 13  Comment 
The merchant trumps other observers in a spate of upgrades to Australia's wheat harvest. What would such a huge crop mean for prices?
Agrimoney.com  Oct 12  Comment 
North America's reduced importance in wheat exports has made markets more vulnerable to "price spikes", the AHDB's Jack Watts warns
Agrimoney.com  Oct 12  Comment 
US officials cut - a little - their forecast for wheat imports by Egypt, the top buyer, after foreign currency and ergot trials
Agrimoney.com  Oct 12  Comment 
Trade is often a bit directionless ahead of a much-anticipated US Wasde report, but a firm dollar ensures a downward trend. Wheat leads the decline


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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