QUOTE AND NEWS
Agrimoney.com  Aug 20  Comment 
Wheat prices recover from early losses amid ideas of setbacks to Ukraine's harvest from unrest, and potential curbs on exports of the grain
Agrimoney.com  Aug 20  Comment 
On a negative day for ags, wheat futures show some resilience, amid continued talk of Ukraine export curbs. But palm oil sets a fresh five-year low
SeekingAlpha  Aug 19  Comment 
By The Mays Report: By G C Mays According to the USDA, estimates of global wheat (NYSEARCA:WEAT) production stand at a record 716 million metric tons. Demand estimates showed an expected increase in wheat consumption of 6.9 million...
Agrimoney.com  Aug 19  Comment 
Wheat prices recover from early losses amid ideas of setbacks to Ukraine's harvest from unrest
The Hindu Business Line  Aug 19  Comment 
With the global wheat market set to witness a glut, what exactly will be the production, supply and demand scenario? How will prices of wheat behave? What are the market dynamics at play wi...
Agrimoney.com  Aug 19  Comment 
The reinstatement of an import levy looks like ending a spell of large US wheat exports to Brazil. There is even talk of Brazil exporting wheat itself
BusinessWeek  Aug 18  Comment 
Corn country is no longer limited to Iowa, Nebraska, and Wisconsin. Farmers everywhere want to ride rising crop prices
Agrimoney.com  Aug 18  Comment 
Apparent progress in Russia-Ukraine talks weakens wheat futures, despite some quality concerns over the US crop. China dryness fears keep corn rising
Agrimoney.com  Aug 15  Comment 
The harvest is, so far, producing some of the best yield results ever although, on quality, protein is low. The spring barley yield proving strong too




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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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