QUOTE AND NEWS
Benzinga  Sep 30  Comment 
The USDA just released the September 1st grain stocks report. The USDA reported the nation's Wheat stocks on September totaled 2.53 billion bushels. Corn stocks were 1.738 billion bushels and soybean stocks totaled197million...
Biomass Magazine  Sep 30  Comment 
Global Bioenergies and Clariant have announced the production of isobutene from a wheat straw hydrolysate in the industrial pilot of Pomacle Bazancourt. This success is the result of a collaboration initiated more than 18 months ago.
Agriculture Online  Sep 30  Comment 
Markets News › Crops David Ekstrom Byline: Mike McGinnis DES MOINES, Iowa -- The U.S. soybean stocks are not as...
Agrimoney.com  Sep 30  Comment 
The IGC issues its first outlook on world winter wheat sowings, and EU rapeseed area, for the 2017 harvest - adding that weather has been "mixed"
Agrimoney.com  Sep 28  Comment 
Western Australia crop hopes fade, as it braces for the latest in a series of frosts. In the east, rains may hurt quality, but not quantity
Agrimoney.com  Sep 27  Comment 
Andrey Sizov tells Agrimoney that Russia is seeing good conditions for winter wheat sowing, despite European Commissn concerns
Agrimoney.com  Sep 26  Comment 
Dry soils in south western Russian "raise concerns" about winter wheat prospects there, the European Commission says
Agrimoney.com  Sep 26  Comment 
Hedge funds, having spent months betting on gains in soft commodity prices and losses in grains, focus on spreads within ag sectors
The Economic Times  Sep 26  Comment 
About 6,00,000 tonnes of wheat has been imported from Australia, Ukrain, France and Russia, while another 4,00,000 to 5,00,000 tonnes is in the pipeline.
Benzinga  Sep 26  Comment 
December Chicago Wheat is trading at 404, down 3/4 of a cent/bushel. March Chicago Wheat is trading at 427 1/4, down 3/4 of a cent/bushel. December Kansas City Wheat is trading at 420, down 1 1/2 cents/bushel. Wheat futures are trading...




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