QUOTE AND NEWS
The Economic Times  Jan 7  Comment 
Cash shortage had led to vegetable prices crashing, delayed wheat sowing and inadequate inputs for winter crops as well as a fall in wages.
Agrimoney.com  Jan 6  Comment 
... with Egypt, already the top wheat importer, to lose 37%, academics say, flagging that cities are expanding onto above-average arable land
The Hindu Business Line  Jan 6  Comment 
Pulses, wheat, oilseeds gain area
Agrimoney.com  Jan 6  Comment 
Soybean prices ease, as market chew over the threat posed by Argentine flooding, while rallies in wheat and cotton futures stall
Agrimoney.com  Jan 5  Comment 
A rally in hogs has curbed the need for buying by index funds in next week's much-anticipated reweighting process, Societe Generale data show
Agrimoney.com  Jan 4  Comment 
US crop reports reveal the scale of winter damage in the US Plains, with wheat ratings in Oklahoma plummeting over the last month
Agrimoney.com  Dec 30  Comment 
...while soybean, robusta coffee, and sugar futures are the winners of 2017
The Hindu Business Line  Dec 30  Comment 
Wheat acreage up 8%, while that of pulses increased by 13%
Benzinga  Dec 29  Comment 
March Chicago Wheat is trading at 402 3/4, up 1 1/4 cents/bushel. May Chicago Wheat is trading at 416, up 1 1/2 cents/bushel. March Kansas City Wheat is trading at 411 1/2, up 2 cents/bushel. Wheat futures are trading steady after Wednesday's...




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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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