QUOTE AND NEWS
Agrimoney.com  2 hrs ago  Comment 
A slew of data proves negative for the likes of cocoa, cotton and wheat, which feels extra pressure from talk of US rains. Coffee futures fare better
Agrimoney.com  7 hrs ago  Comment 
Brazil's 2014-15 wheat crop will set a record with ease as elevated prices boost the grain's appeal to farmers, Conab says
SeekingAlpha  8 hrs ago  Comment 
By T. Marc Schober: U.S. wheat sales declined sharply reaching a marketing year low and have declined nine out of the last ten weeks. Wheat exports increased slightly from the past week. Corn sales and export levels declined, but reported levels...
The Hindu Business Line  Apr 9  Comment 
Farmers seen shifting back to the natural fibre crop from guarseed
The Hindu Business Line  Apr 9  Comment 
Prices of dara wheat and flour dropped further on easy availability of stocks coupled with reduced offtake on Wednesday.Satish Kumar, a wheat trader, told Business Line that t...
Agrimoney.com  Apr 9  Comment 
It is not just hard red winter wheat crops which have been hurt by the savage US winter, but benchmark soft red winter wheat and white winter too
Commodity Online  Apr 9  Comment 
Bill C-30 also includes provisions that would allow the federal Cabinet to set minimum volume requirements for the railways in extraordinary circumstances.
Agrimoney.com  Apr 8  Comment 
US officials, while delaying their first national winter wheat condition rating, reveal that the Kansas crop is in worse health than a year ago
Agriculture Online  Apr 7  Comment 
Adding insult to the injury that is dryness and spotty winterkill for crops that are beginning to green up this spring, army cutworms are marching throughout wheat, alfalfa and canola fields in the Central Plains.
The Economic Times  Apr 5  Comment 
Centre had raised the minimum support price (MSP) of wheat by Rs 50 to Rs 1,400 per quintal in October for 2013-14 crop.




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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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