QUOTE AND NEWS
Benzinga  Nov 28  Comment 
December Chicago Wheat is trading at 391, down 4 3/4 cents/bushel. March Chicago Wheat is trading at 416 1/2, down 3 cents/bushel. March Kansas City Wheat is trading at 429, down 1/2 of a cent/bushel. Wheat futures are trading just above the...
The Hindu Business Line  Nov 27  Comment 
Even as stocks are tightening at all levels, the next harvest is only in April 2017
Agrimoney.com  Nov 25  Comment 
Spring wheat contracts rise on expiry in Minneapolis, while feed wheat slumps in Chicago, painting a picture of quantity, but not quality
Agrimoney.com  Nov 25  Comment 
The Argentine agriculture ministry sees wheat production at a five-year high, but as the country's grain exchange teases downgrades
Benzinga  Nov 25  Comment 
The USDA reported today that corn export sales for the week ending November 17th totaled 1,688,800 tonnes. Sales were up 2 percent from the previous week and up 31 percent from the four week average. Wheat export sales totaled 712,500 tonnes....
Agrimoney.com  Nov 25  Comment 
Analysts are wary of putting a figure on the Australian harvest, but some local traders are hoping for a record crop
Agrimoney.com  Nov 24  Comment 
... flagging decent weather, and the prospect of "unchanged" area. The IGC also lifts its estimate for world grain stocks above 500m tonnes
The Hindu Business Line  Nov 23  Comment 
For wheat farmers, who are already grappling with the currency shortage triggered by the demonetisation of high value notes in the ongoing rabi season, there’s more to worry about in the coming days.
Benzinga  Nov 22  Comment 
December Chicago Wheat is trading at 409 1/4, down 1 cent/bushel. March Chicago Wheat is trading at 427, unchanged on the day. December Kansas City Wheat is trading at 414 1/4,down 1/4 of a cent/bushel. Wheat futures are trading steady to a...
Agrimoney.com  Nov 21  Comment 
Cold dry weather, followed by short, sharp rains, slowed the emergence of winter wheat in Ukraine, the European Commission says




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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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