QUOTE AND NEWS
The Economic Times  4 hrs ago  Comment 
The current reservoir level is in line with the 10-year average and better than the drought years of 2009 and 2012, but way short of last year .
SeekingAlpha  5 hrs ago  Comment 
By Matthew Bradbard: Wheat is lower by 25% in the last five months consolidating in a 40-cent range over the last six weeks. Like a coiled spring, the longer prices remain constrained in this tight range, the larger the breakout I anticipate....
Agrimoney.com  9 hrs ago  Comment 
Wheat futures jump on a Nato caution over Russian troops in Ukraine. This time, the rally ignites chart support too. Corn and soybeans also gain
Agrimoney.com  10 hrs ago  Comment 
The UK wheat crop starts to show signs of the rain damage that has affected crops in other EU countries. Still, chances rise of a record yield
Agrimoney.com  Aug 28  Comment 
While fundamentals for wheat aren't great, given record world output, they are less downbeat than for corn. China lending hopes help soy, palm oil
Agrimoney.com  Aug 27  Comment 
Soybeans drop as reports of huge US harvest yields trump growing disease reports. But wheat rises, with Ukraine tensions. Cotton closes higher too
Agrimoney.com  Aug 26  Comment 
The US is poised for more of the rainfall which, while boosting corn and soybean yield hopes, is for wheat slowing harvest and lifting quality worries
Agrimoney.com  Aug 26  Comment 
The soy complex retreats, amid ideas that US cash market strength may fail. But wheat gains, with Egypt in the market, and US crop condition falling
Commodity Online  Aug 26  Comment 
The auctions were again conducted on the NPSOT platform after completing a successful pilot last year, in which FCI sold 17 lakh tonnes of wheat through seven e auctions




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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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