QUOTE AND NEWS
The Economic Times  7 hrs ago  Comment 
Traders and processors of wheat products are concerned over a likely move by the government to impose a 10 per cent duty on the cereal grain to discourage imports
Benzinga  Jul 28  Comment 
Wheat futures are trading a little higher Tuesday morning. September Chicago Wheat is trading at 503 3/4, up 1 1/4 cents and December Chicago Wheat is trading at 513 1/2, up 1 3/4 cents. September Kansas City Wheat is trading at 501 1/2, up 2 1/4...
Benzinga  Jul 28  Comment 
Agrimoney.com  Jul 28  Comment 
US officials warn over the setback to Russian wheat exports from a levy, even as Moscow is said to be planning fresh red tape on shipments
Agrimoney.com  Jul 28  Comment 
The Midwest will get rain where corn and soy crops need it, and dryness where they don't. Still, it is too late to correct moisture damage to wheat
The Economic Times  Jul 27  Comment 
India has decided to introduce an import duty of 10 per cent on wheat, after senior civil servants met to discuss ways to curb overseas purchases when domestic stocks are ample.
Agrimoney.com  Jul 24  Comment 
Drought in Canada's breadbasket caused considerable damage to canola and wheat - but not as much as had been feared, crop tour results show
Agrimoney.com  Jul 24  Comment 
The bank cautious over the threat to crop prices from a stronger dollar. But it is reasonably sanguine on prospects for many ags nonetheless
The Economic Times  Jul 24  Comment 
At present, there is no import duty on wheat. But the Food Ministry has proposed 10% import duty to curb cheaper shipments as the country already has surplus stock.
Benzinga  Jul 24  Comment 
Wheat futures are trading a little lower early Friday morning. September Chicago Wheat is trading at 518 1/2, down 3 cents and December Chicago Wheat is trading at 525 3/4, down 3 cents. September Kansas City Wheat is trading at 514, down 3 cents...
Agrimoney.com  Jul 24  Comment 
Soft China data cast a cloud over many markets, and encourage an easing in soy prices. But cotton takes heart in US export data. Wheat holds firm too




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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

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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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