QUOTE AND NEWS
Agrimoney.com  5 hrs ago  Comment 
A rise in the dollar to an 11-year high sends prices of most commodities lower, including corn. But coffee and wheat, having already lost plenty, gain
Benzinga  Mar 6  Comment 
Weekly export sales came in at 507,600, a little better than estimates. Wheat Futures are trading steady Friday morning after Thursday's decline. May Chicago Wheat is trading at 480, down a 1/2 cent. July Chicago wheat is trading at 486 3/4, down...
Agrimoney.com  Mar 6  Comment 
This time, corn leads downside movement in Chicago, amid ideas that relative price resilience may have encouraged extra sowings. Wheat holds firm
Agrimoney.com  Mar 5  Comment 
Chicago wheat futures take their drop this year to 19%, amid improved supply ideas, and poor quality grain on offer. But is a rebound in the offing?
Benzinga  Mar 5  Comment 
Weekly export sales data for wheat are due out Thursday. Estimates are for 450,000 tons. Wheat Futures are a little lower. May Chicago Wheat is trading at 493 1/2, down 2 1/2 cents. July Chicago wheat is trading at 501, down 2 cents. May Kansas...
Benzinga  Mar 5  Comment 
Agrimoney.com  Mar 5  Comment 
The UN food agency, in its first forecast for the world's next wheat harvest, is more upbeat than the IGC and Australian and Canadian officials
Benzinga  Mar 4  Comment 
Wheat Futures have moved down Wednesday morning. Trading is expected to be choppy and range bound. May Chicago Wheat is trading at 497 3/4, down 8 cents. July Chicago wheat is trading at 503, down 6 3/4 cents. May Kansas City Wheat is trading at...
Benzinga  Mar 4  Comment 
Commodity Online  Mar 4  Comment 
Against the said allotment, a quantity of 38.67 lakh tonnes of wheat has been confirmed for sale during the year 2014-15 upto 19.02.2015 at an average price Rs. 1614.40/- per Qtl.
Commodity Online  Mar 3  Comment 
According to a government data, 25.11 million tonne(Mt) wheat is available in central pool as on January 1, 2015. Meanwhile the stock of rice stood at 11.74Mt.
Commodity Online  Mar 3  Comment 
Presently, states charge very high statutory levies and commissions, which vary from 3.6% in Rajasthan to 14.5% in Punjab in case of wheat. In Gujarat and West Bengal, on the other hand, the same comes to less than 2%.




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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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