QUOTE AND NEWS
The Economic Times  Dec 9  Comment 
Pulses acreage has grown to 121.74 lakh hectares from 110.80 lakh hectares. Oilseeds sowing area has risen to 72.23 lakh hectares from 65.71 lakh hectares during the period under review.
The Economic Times  Dec 9  Comment 
India, which has been snapping up Australian and Black Sea wheat cargoes in recent weeks, was expecting the shipments from Ukraine to arrive this month, but traders now say they might reach India by January.
Agrimoney.com  Dec 8  Comment 
... thanks to a record domestic crop, Conab says. The wheat Brazil does buy will come overwhelmingly from Argentina rather than, say, the US
Agrimoney.com  Dec 8  Comment 
The UN FAO notes decent conditions for wheat in the likes of Europe, China and Russia, when cereals prices are already close to 10-year lows
Agrimoney.com  Dec 8  Comment 
Demand hopes spurred by India's ditching of an import duty, and by a Saudi Arabian tender, send wheat futures higher. But Trump fears undermine soy...
The Economic Times  Dec 8  Comment 
India, the world's second-biggest wheat producer, lowered its import tax on the grain to 10 percent from 25 percent in September.
Agrimoney.com  Dec 7  Comment 
Chicago soybean futures, having been spotted following Dalian peers, find trailing them again tricky. Corn, wheat dip. But what of a Russian freeze?
Agrimoney.com  Dec 7  Comment 
Soybeans will also remain under pressure from heavy production next year, but the outlook for rapeseed is more positive thanks to tight supply
Benzinga  Dec 7  Comment 
March Chicago Wheat is trading at 404 3/4, down 2 cents/bushel. May Chicago Wheat is trading at 417 1/4, down 2 cents/bushel. March Kansas City Wheat is trading at 404 1/2 , down 1/2 of a cent/bushel. Wheat futures are trading ja little lower....
The Economic Times  Dec 7  Comment 
Private traders have imported 1.72 million tonne (MT) wheat so far and total inbound shipments are expected to cross 2 MT this year.




RELATED WIKI ARTICLES
 


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

Error creating thumbnail

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

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki