QUOTE AND NEWS
Agrimoney.com  Feb 16  Comment 
Wheat prices make a short-lived attempt to break out of a long-term downtrend, while the bounce in cocoa futures extends
SeekingAlpha  Feb 16  Comment 
The Hindu Business Line  Feb 15  Comment 
The Centre has decided to procure 330 lakh tonnes (lt) of wheat during the rabi marketing season 2017-18, higher than 229.61 lt during the last season.A decision to this effect was taken on Wednesday...
The Hindu Business Line  Feb 15  Comment 
India’s foodgrain output is likely to hit a record 271.98 million tonnes in the 2016-17 crop year ending June, buoyed by good monsoon after two years of drought. Wheat, rice, pulses, coarse cereals...
The Economic Times  Feb 15  Comment 
Ukrainian wheat exports in the first seven months of the current season, which runs from July to June, are up 16% from the previous season at 12.72 million tonnes.
Agrimoney.com  Feb 14  Comment 
Rising prices, and a stronger tone to the sterling, sends UK wheat exports sharply lower, while imports rise
Benzinga  Feb 14  Comment 
March Chicago Wheat is trading at 450, down 2 1/4 cents/bushel. May Chicago Wheat is trading at 463 1/2, down 3 1/2 cents/bushel. March Kansas City Wheat is trading at 466, down 3/4 of a cent/bushel. Wheat futures are trading a little lower....
Agrimoney.com  Feb 13  Comment 
Strong demand for US corn and soybean exports is helping sentiment in the Midwest farmland market, according to the Federal Reserve
Agrimoney.com  Feb 13  Comment 
Hedge funds return to a more upbeat view of ag prices, taking a record net long in cotton. Cocoa misses out, as funds exploit a 5-year low in prices




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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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