QUOTE AND NEWS
Agrimoney.com  4 hrs ago  Comment 
Technical selling weighs on soybeans, but wheat markets find some bargain buying after a bearish week
Agrimoney.com  12 hrs ago  Comment 
The industry group top forecasts for the EU soft wheat harvest this year. But it is more cautious on barley, rapeseed production prospects
The Economic Times  Mar 24  Comment 
Food Minister Ram Vilas Paswan said it is known that while MSP is declared for 22 items, the government often only buys wheat and rice crop.
The Times of India  Mar 24  Comment 
COMMODITIES-TECHNICALS/WHEAT:TECHNICALS-CBOT wheat still targets $4.17-3/4
The Times of India  Mar 23  Comment 
USA-WHEAT/CBOT:CBOT wheat closes lower on big supply, Plains rain
The Times of India  Mar 23  Comment 
EUROPE-GRAINS/:EU wheat falls to 7-week low on poor exports, technical factors
The Times of India  Mar 23  Comment 
GLOBAL-GRAINS/:GRAINS-U.S. soybean, corn fall on bumper S. American crops, wheat flat
Agrimoney.com  Mar 23  Comment 
Certainly, selling is still evident, but it focuses this time on palm oil, dragging other oilseeds lower. China import data offer support to grains
The Economic Times  Mar 23  Comment 
Pramod Tiwari (Cong) said 119 farmers had committed suicide in Maharashtra because of the distress caused by zero import duty and unremunerative prices.
The Times of India  Mar 23  Comment 
JAPAN-WHEAT/TENDER:Japan buys 117,689 tonnes food wheat via tender




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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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