QUOTE AND NEWS
Agrimoney.com  2 hrs ago  Comment 
Oilseeds attract some selling, and in particular palm oil, which is sapped by ideas of easier supplies. Cotton gets help from a notable Chinese rally
Reuters  Jun 28  Comment 
The wheat stock position in India is comfortable as the government had 32.64 million tonnes in the central pool at the beginning of June, a government statement said on Tuesday.
NPR  Jun 27  Comment 
Many consumers in North America and Europe are willing to pay a premium for nutritious, organic grains. That makes the market ripe for a revival of millennia-old bread wheat, some plant breeders say.
Yahoo  Jun 27  Comment 
U.S. District Judge Edmond Chang said traders may pursue claims that a large and, in their view, unnecessary late 2011 purchase by Kraft Foods Inc of wheat futures contracts violated the Sherman antitrust law and the Commodity Exchange Act. Kraft...
Agrimoney.com  Jun 27  Comment 
Weakness in sterling sends London wheat and cocoa higher, but a stronger dollar depresses Chicago values. US hard wheat hits a 10-year low
Agrimoney.com  Jun 24  Comment 
Officials nudge higher estimates for wheat sowings, forecast a record corn crop, and lift soybean harvest hopes - which an exchange does too
Agrimoney.com  Jun 24  Comment 
Weakness in sterling sends London wheat and cocoa higher, but a stronger dollar depresses Chicago values. US hard wheat hits a 10-year low
Southeast Farm Press  Jun 23  Comment 
Virginia Department of Agriculture Virginia farmers expect to harvest 11.7 million bushels of winter wheat during 2016, down 16 percent from the previous year. read more
Agrimoney.com  Jun 21  Comment 
Abares forecast world wheat prices falling to a fifteen-year low, while Australian wheat exports are set to rise 4% year on year
Agrimoney.com  Jun 21  Comment 
Corn futures fall again, after data show the US crop is not deteriorating as investors had expected. Soy, wheat gain - helped by reversal of spreads?




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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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