QUOTE AND NEWS
Benzinga  4 hrs ago  Comment 
March Chicago Wheat is trading at 501 3/4, down 3 1/2 cents. March Kansas City Wheat is trading at 533 1/2, down 2 1/4 cents. The U.S. dollar strength and lower prices in most grains had led to general selling; more chatter about France selling...
Agrimoney.com  7 hrs ago  Comment 
Corn futures drop, after surrendering technical support levels in the last session. Now it is wheat's turn to test its chart. Meal supports soybeans
Agrimoney.com  Jan 28  Comment 
Wheat drops 3% in Paris, and returns near $5.00 a bushel in Chicago, while soyoil plunges to its lowest in nearly six years. Corn futures fall too...
Benzinga  Jan 28  Comment 
March Chicago Wheat is trading at 508 1/2, down 10 1/2 cents. March Kansas City Wheat is trading at 539 3/4, down 10 1/2 cents. Trading has picked up with weak action. Market talk is about choppy trading and record global supplies. © 2015...
Benzinga  Jan 28  Comment 
Agrimoney.com  Jan 28  Comment 
Corn futures are being squeezed between two chart lines. But for how long? Meanwhile, wheat falls again. Hard red winter wheat prices hit a 4-year low
Benzinga  Jan 27  Comment 
March Corn is trading lower at 381, down 3 cents. July Corn is trading at 396 3/4, down 3 1/4 cents. March Chicago Wheat is trading a bit higher at 521 1/4, while March Kansas City Wheat is trading at 552, down 2 1/2 cents. Trading is...
Benzinga  Jan 27  Comment 
Agrimoney.com  Jan 27  Comment 
Argentine corn and wheat exports may beat earlier forecasts, thanks in part to expectations of "significant" policy reforms, US officials say




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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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