QUOTE AND NEWS
USDA NASS  4 hrs ago  Comment 
Ample rain and moderate temperatures across the Nation’s mid-section led to record-high yield and production for corn and soybeans, both key U.S. crops, in 2016, according to the Crop Production 2016 Summary released today by the U.S. Department...
Agrimoney.com  4 hrs ago  Comment 
Wheat futures hit multi-month highs after the US says its winter sowings fell by even more than investors had expected. Soybean prices rise too
Benzinga  5 hrs ago  Comment 
The USDA Crop reports were just released. March Soybeans are trading at 1027 1/4, up 15 1/4 cents/bushel. March Soymeal is trading at 320.3, up 5.3 $/ton. March Soybean Oil is trading at 36.26, up 0.26 cents/lb. March Corn is...
USDA NASS  5 hrs ago  Comment 
Planted Acres Down 10 Percent...
Benzinga  10 hrs ago  Comment 
March Chicago Wheat is trading at 416 1/4, down 2 1/2 cents/bushel. May Chicago Wheat is trading at 430, down 2 1/4 cents/bushel. March Kansas City Wheat is trading at 427 1/2, down 4 1/4 cents/bushel. Wheat futures are trading a little above...
Agrimoney.com  Jan 10  Comment 
Conab ditches ideas of wheat imports falling to their lowest since at least the 1990s, after state intervention boosts the appeal of buy-ins
Benzinga  Jan 10  Comment 
March Chicago Wheat is trading at 425 1/2, down 1 3/4 cents/bushel. May Chicago Wheat is trading at 438, down 2 cent/bushel. March Kansas City Wheat is trading at 437, down 1 1/2 cents/bushel. Wheat futures are trading lower. Chatter about...
The Hindu Business Line  Jan 9  Comment 
Community to launch quota stir on Jan 29; miffed at note-ban, wheat import relaxation
The Economic Times  Jan 7  Comment 
Cash shortage had led to vegetable prices crashing, delayed wheat sowing and inadequate inputs for winter crops as well as a fall in wages.




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

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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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