QUOTE AND NEWS
The Economic Times  Apr 26  Comment 
Already bearing the brunt of freak weather, farmers are also being forced to sell their crop below MSP rate of Rs 1,450 a quintal at a few places in the state.
Benzinga  Apr 24  Comment 
Corn futures traded lower Friday and settled the session weak. July Corn settled at 369 3/4, down 7 cents. December Corn settled at 388 1/4, down 6 1/4 cents. Chicago Wheat traded lower and ended the day near the lows of the session. July...
Agrimoney.com  Apr 24  Comment 
The soft red winter wheat crop is on track for "average" yields - but there are threats to the "important export crop" of soft white wheat
Benzinga  Apr 24  Comment 
Wheat futures are little changed Friday morning. July Chicago wheat is trading at 496 1/2, down 1 1/4 cents. July Kansas City Wheat is trading at 521 1/4, down 3/4 cents. On Thursday, the USDA reported weekly wheat export sales of 524,200 tons....
Benzinga  Apr 24  Comment 
The Economic Times  Apr 24  Comment 
Haryana Agro Industries Corporation bought 3.95 lakh tonnes, while Haryana Warehousing Corporation purchased 5.84 lakh tonnes.
Agrimoney.com  Apr 23  Comment 
Wheat futures outperform those in corn, as usual at this time of year, as Corn Belt sowings weather improves. But what will data later hold?
Forbes  Apr 23  Comment 
In many conversations about data and analytics, we talk about data the way we talk about coal or wheat or gold. Data is raw material. It’s collected or created, then put into a machine to turn it into some kind of product. That’s wrong. Data...
Agrimoney.com  Apr 23  Comment 
The bank espouses a "tactically short position" in cotton futures, forecasting a waning in hedge fund, and is modestly bearish on wheat prices
Benzinga  Apr 23  Comment 
Wheat futures are higher Thursday morning. May Chicago Wheat is trading at 502, up 3 1/4 cents. July Chicago wheat 502 3/4, up 3 3/4 cents. May Kansas City Wheat is trading at 519 1/4, up 7 1/4 cents. Market chatter about weather and crop...
Benzinga  Apr 23  Comment 
Agrimoney.com  Apr 23  Comment 
The bank echoes rival Rabobank in foreseeing some scope for higher wheat prices. But it is more neutral on prospects for corn and soybean futures




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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

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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