QUOTE AND NEWS
Agrimoney.com  Jul 14  Comment 
UK wheat sowings fall to one of the lowest in recent history, while spring barley area soars, reflecting measures to control the weed
Agrimoney.com  Jul 14  Comment 
Brokers had banked on retreats in soy and wheat prices, but not in corn, FocusEconomics data show. In softs, analysts are upbeat on prices
Agrimoney.com  Jul 13  Comment 
The group takes above 3m tonnes in 3 months its cuts to EU soft wheat hopes - following hard on the heels of a downgrade by the USDA too
The Times of India  Jul 13  Comment 
New Delhi, Jul 13 () Prices of wheat and rice basmati eased by up to Rs 100 per quintal at wholesale grains market today owing to slackened demand against sufficient stocks position. However, other bold grains rose on pick-up in demand from...
The Times of India  Jul 13  Comment 
BLACKSEA-WHEAT/:Wheat yields mixed in Russia, Ukraine after rain delays harvest
Agrimoney.com  Jul 12  Comment 
The USDA, citing "excellent" crop conditions, lifts its estimate for Russian wheat exports this season above the forecast for EU shipments
Agrimoney.com  Jul 12  Comment 
Spring wheat and soybeans eventually falter too, despite emerging less negatively from the USDA's benchmark Wasde report on world crop supplies
USDA NASS  Jul 12  Comment 
Winter Wheat Production Up 2 Percent from June. Durum Wheat Production Down 45 Percent from 2016. Other Spring Wheat Production Down 21 Percent from 2016...
Agrimoney.com  Jul 10  Comment 
... as hot US and Canadian weather worries investors, with a rise in Russia values helping bulls too. But cotton and, especially, sugar prices plunge
New York Times  Jul 10  Comment 
Breads made with rice, potato, tapioca or other flours in place of wheat aren’t allowed for communion, Vatican says.




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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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