QUOTE AND NEWS
The Economic Times  May 26  Comment 
In Uttar Pradesh, where chief minister Yogi Adityanath announced that 8 MT of wheat would be purchased from farmers when he took over, procurement had reached 2.4 MT as of May 25.
Agrimoney.com  May 25  Comment 
Canada's unexpectedly strong spring wheat sowings are being led by a top quality variety, AAFC says, seeing upward pressure on rapeseed prices
TechCrunch  May 23  Comment 
 The Minibrew is a little keg with a big brain. When we first met the company in 2015 they offered a whiff of high tech to the brewing process, adding a monitored brew vessel and mobile app to the age-old technique of slopping a bunch of wheat,...
Agrimoney.com  May 23  Comment 
EU wheat stocks were not likely to rebuild even before French setbacks, FC Stone says, flagging cause for some rapeseed price optimism too
Agriculture Online  May 23  Comment 
News › Crops Byline: Tony Dreibus 1. Wheat Declines as Progress Report Shows Unexpectedly Good Crop Wheat futures were lower...
Agrimoney.com  May 22  Comment 
France is set for below-average wheat yields, while Germany faces a "mediocre" rapeseed result, officials say. But UK crops are upgraded
Agriculture Online  May 22  Comment 
News › Crops Bill Spiegel Byline: Tony Dreibus 1. Wheat Rises as Viral Disease Threatens Hard Red Winter Crop Wheat...
The Hindu Business Line  May 19  Comment 
The food and meat processing industry on Friday largely welcomed the new tax rates announced at the GST Council meeting in Srinagar, but some of them are concerned about certain GST fitment rates.
Agrimoney.com  May 18  Comment 
US wheat wins its first Gasc order in two years at tender, undercutting Russian supplies. But that may not mean US prices can rise, brokers say
Agrimoney.com  May 18  Comment 
... starting to put numbers on the cost to 2017 production of unduly dry and cold weather. German crops receive a separate downgrade from the DRV




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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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