QUOTE AND NEWS
Agrimoney.com  Jul 6  Comment 
European wheat futures close higher but, in the absence of a pull from US markets, only just. Rapeseed fares a bit better. But cocoa prices ease
Agrimoney.com  Jul 6  Comment 
The wheat rally goes into reverse, with its epicentre, spring wheat, falling particularly hard. Soybean and cotton futures avoid the carnage
Agriculture Online  Jul 6  Comment 
News › Crops iStock: simazoran Byline: Tony Dreibus 1. Wheat Drops Amid Profit-Taking After Prices Hit Two-Year...
Agrimoney.com  Jul 5  Comment 
Gasc extends its rapid start to 2017-18 for wheat purchases, buying 410,000 tonnes - all from Romania and Russia. Algeria buys big too
Agrimoney.com  Jul 5  Comment 
US spring and winter wheat futures set multi-year highs, only to fall back sharply. Cotton, cocoa, sugar drop too. But corn and soybeans fare better
Agriculture Online  Jul 5  Comment 
News › Crops Byline: Tony Dreibus 1. Wheat, Soybeans Expected to Open Higher After July 4th Holiday Wheat and soybean futures are...
Agrimoney.com  Jul 5  Comment 
AgroInfomarket lifts forecasts for soft wheat and corn imports by the EU's top buyer, as it cuts, again, hopes for Spain's own harvest
Agrimoney.com  Jul 4  Comment 
European wheat futures close higher but, in the absence of a pull from US markets, only just. Rapeseed fares a bit better. But cocoa prices ease
Agrimoney.com  Jul 4  Comment 
AgroInfomarket lifts forecasts for wheat and corn imports by the EU's top buyer, as it cuts, again, hopes for Spain's own harvest
Agrimoney.com  Jul 4  Comment 
... in both the US, where spring wheat reaches a 4-year high, and the EU, where London wheat tops andpound;150. Coffee, sugar gain too, besides corn, so




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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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