Agrimoney.com  18 min ago  Comment 
Strategie Grains, in its first forecast for EU soft wheat sowings for the 2017 harvest, sees them proving little changed. But durum area will dip
Benzinga  Oct 19  Comment 
December Chicago Wheat is trading at 417 1/4, down 2 3/4 cents/bushel. March Chicago Wheat is trading at 437 3/4, down 2 1/4 cents/bushel. December Kansas City Wheat is trading at 421, down 3/4 of a cent/bushel. December Corn is trading...
Agrimoney.com  Oct 19  Comment 
Farmers are "concerned" about wetter weather as harvest proceeds - undermining ideas that Brazil's wheat imports will hit a 12-year low
Agrimoney.com  Oct 19  Comment 
Certainly, progress in prices of Chicago wheat, the funds' favourite, has stalled, allowing spreads against hard wheat, and corn to correct a bit...
Benzinga  Oct 18  Comment 
December Chicago Wheat is trading at 421 1/2, down 2 1/4 cents/bushel. March Chicago Wheat is trading at 440, down 2 cents/bushel. December Kansas City Wheat is trading at 412 1/4, up 1/4 of a cent/bushel. Wheat futures are trading rangebound...
Agrimoney.com  Oct 18  Comment 
... but does not evaporate, with vegetable oils and soybeans making a little further headway. Hard wheat tries to regain a premium. But cotton eases
Agrimoney.com  Oct 17  Comment 
Palm oil and soyoil prove the real stars of the ag complex, but soybeans have other reasons to rise too. The short-covering rally in wheat goes on
Benzinga  Oct 17  Comment 
The USDA reported today that weekly export inspections for wheat as of October 13th totaled 450,613 tonnes. December Chicago Wheat is trading at 422 1/2, up 1 1/2 cents/bushel. March Chicago Wheat is trading at 441, up 1 3/4 cents/bushel....
GenEng News  Oct 17  Comment 
Researchers have discovered that a protein in wheat triggers the inflammation in chronic health conditions, such as multiple sclerosis, asthma, and rheumatoid arthritis, and also contributes toward the development of nonceliac gluten...


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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