QUOTE AND NEWS
Agrimoney.com  4 hrs ago  Comment 
Deutscher Raiffeisenverband nudges higher its crop estimate - citing weather which US officials say may help fungal infections too
Benzinga  5 hrs ago  Comment 
Market talk about weather has kept sellers and buyers active. Chatter that crop conditions may improve over the next few weeks has recently brought sellers in. Chatter about world supplies and the continued overall increase in EU exports...
Agrimoney.com  Apr 14  Comment 
Forecasts for US rains depress wheat futures, easing drought concerns, but in spurring sowings fears boost corn prices. Brazilian rains help sugar
Benzinga  Apr 14  Comment 
The USDA reported Monday that weekly wheat export inspections were 445,674 tons. Wheat futures are trading lower Tuesday after Monday's decline. May Wheat is trading at 498 1/2, down 3 3/4 cents. July Chicago wheat is trading at 496 3/4, down 3...
The Economic Times  Apr 14  Comment 
Providing relief to farmers affected by unseasonal rains and hailstorms, the Centre today relaxed the quality norms for procurement of wheat in Haryana.
Agrimoney.com  Apr 14  Comment 
Wheat futures fall despite data showing a further deterioration in US crop condition, as forecasts show rains for drought-hit areas
Agrimoney.com  Apr 14  Comment 
Soybeans manage some gains, supported by improved thinking over Chinese demand. But there is no recovery for wheat, despite a drop in US crop ratings
Benzinga  Apr 13  Comment 
Wheat futures are trading sharply Monday. May Wheat is trading at 504 1/2, down 22 cents. July Chicago wheat is trading at 502 1/2, down 21 3/4 cents. May Kansas City Wheat is trading at 530, down 28 3/4 cents. Market talk about weather has...
Benzinga  Apr 13  Comment 
Agrimoney.com  Apr 13  Comment 
US and Canberra officials agree on prospects for Australia's wheat harvest this year, but not on export potential. But will the weather play ball?
Agrimoney.com  Apr 13  Comment 
US Department of Agriculture foreign staff see the EU wheat crop staying above 150m tonnes. But strong exports will foster a drop in inventories
Benzinga  Apr 13  Comment 




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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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