QUOTE AND NEWS
Agrimoney.com  4 hrs ago  Comment 
The forecast for wheat exports is cut too - leaving the bloc likely to lose to Russia the position of the world's top-ranked wheat exporter
Agrimoney.com  8 hrs ago  Comment 
"Toxic" wheat futures stage a, modest, recovery from 10-year lows. But selling remains on corn and soybeans, as harvest approaches, and in cotton too
Benzinga  Aug 29  Comment 
The USDA reported today that Corn weekly export inspections as of August 25th totaled 1,422,274 tonnes. Wheat export inspections totaled 511,965 tonnes and Soybean export inspections were 921,137 tonnes. November Soybeans are trading at 970,...
Financial Times  Aug 28  Comment 
Commodity goes below $4 a bushel for first time since 2006 as good weather helps yield bumper crop
Agrimoney.com  Aug 26  Comment 
Heavy supplies and the stronger dollar sends wheat sharply down, breaking out of its trading band to fresh lows
Agrimoney.com  Aug 26  Comment 
UK harvest yields are, unlike French ones, hitting farm averages, with quality decent too - just as fears over world milling supplies are growing
Agrimoney.com  Aug 26  Comment 
Rabobank, Gleadell and US Wheat Associates follow the IGC in alerting over quality setbacks to the world's bumper wheat harvest
Agrimoney.com  Aug 25  Comment 
The IGC flags "escalating concerns" of a squeeze on milling wheat supplies, even as it lifts its world grains harvest forecast to a record high
Benzinga  Aug 25  Comment 
The USDA reported today that Soybean weekly export sales for the current marketing year for the period ending August 18th totaled 115,100 tonnes. Sales for 2016 to 2017 totaled 1,939,600 tonnes. Corn sales for 2015 to 2016 totaled 71,100...
Agrimoney.com  Aug 24  Comment 
Futures are under a cloud left by the last session's wheat price tumble. Chicago wheat sets a contract low. Corn drops, despite mixed US crop findings




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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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