Reuters  Mar 21  Comment 
India has dropped a plan to double a wheat import tax to 40 percent, two government sources said, in a sign it expects imports to make up for a shortfall in domestic production for the third year in a row.
The Hindu Business Line  Mar 19  Comment 
Punjab, Haryana far better thanks to willingness to adapt
The Economic Times  Mar 19  Comment 
State governments ensuring that agencies procure wheat ensuring farmers get minimum support price (MSP) of Rs 1,735 per quintal.
The Economic Times  Mar 17  Comment 
Although the acreage of wheat cultivation was 4% lower this year, higher yields and good crop conditions in the major producer states would ensure production was high, Pattanayak said.
The Hindu Business Line  Mar 16  Comment 
The Madhya Pradesh government has begun wheat purchases from farmers in Indore and Ujjain division paying the minimum support price (MSP) of ₹1,735 per quintal. However, there is no clarity on
The Hindu Business Line  Mar 15  Comment 
Procurement of wheat by government agencies in Madhya Pradesh has begun on Thursday, mainly in the divisions of Indore and Ujjain, where the cereal crop ripens early. Official sources in the S
The Hindu Business Line  Mar 14  Comment 
Plastic bucket, wheat flour, coffee mug offered to potential customers
MarketWatch  Mar 14  Comment 
Shares of Arcadia Biosciences Inc. , an agricultural biotech that seeks to develop products that benefit the environment and human health, surged 189% on Wednesday after the company announced that it has reached two key milestones in its High...
The Economic Times  Mar 7  Comment 
The higher prices are due to lower wheat output expected this year, as well as the higher minimum support price announced by the government, said an ITC executive.
The Hindu Business Line  Mar 6  Comment 
FMCG major ITC today said its Aashirvaad atta has become a Rs 4,000-crore brand in the wheat flour market, with around 28 per cent share in the branded segment. The company as part of its e


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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