QUOTE AND NEWS
Agrimoney.com  2 hrs ago  Comment 
An inverse correlation between the rouble and wheat prices appears to be holding, as the Russian currency recovers, a little. Chinese data help cotton
Agrimoney.com  Dec 16  Comment 
Wheat prices set fresh multi-month highs, as the collapse in the rouble provokes ideas of Russian farmers hoarding crops. But soybeans, sugar etc fall
Benzinga  Dec 16  Comment 
Wheat Futures were higher mid-day on continued supply concerns. March Kansas City Wheat was up $0.18 at $6.65. March Chicago Wheat was $0.17 higher at $6.36. January Soybean futures were trading lower at $1036. March Soymeal Futures were...
Agrimoney.com  Dec 16  Comment 
Prospects for Ukraine fertilizer use, for wheat for the 2015 harvest, have not fallen as sharply as some had feared, UkrAgroConsult reveals
Agrimoney.com  Dec 15  Comment 
Chicago wheat futures hit a five-month high, and a six-month closing high in Paris, amid fears Russian export curbs are "very much on the agenda"
The Economic Times  Dec 15  Comment 
According to data from the agriculture ministry, total area covered under rabi – or winter-sown – crops was 6.5% less than previous year at 47.07 million hectares as of Friday.
The Economic Times  Dec 13  Comment 
Punjab has sought the Centre's intervention in stepping up urea supply while highlighting that its shortage was hampering wheat sowing in the state.
The Economic Times  Dec 13  Comment 
According to reports from district headquarters, cash crops like wheat, grapes, pomegranates, onion and chillies nearing harvest.
Commodity Online  Dec 13  Comment 
Wheat's sowing area is at 241.91 lakh hectares as compared to last year and rsquo;s 251.32 lakh hectares. Area under total oilseeds is at 69.91 lakh hectares as compared to 75.33 lakh hectares last year.




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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

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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