Agrimoney.com  8 hrs ago  Comment 
The biggest wheat buyer accelerates purchases, even as supplies from top origin Russia get more expensive - in some cases topping French offers
Agrimoney.com  Feb 22  Comment 
Wheat futures, for now, steer clear of confrontations with key chart points, as importers enter the market. Cotton gets help from Australia dryness
Agrimoney.com  Feb 21  Comment 
The bank sees little scope a wheat price rise over 2017, even while flagging the potential for El Nino to reverse Australia's crop fortunes
The Economic Times  Feb 21  Comment 
Since 2007 till 2015, there was no import duty on wheat. It was imposed in December of 2015 and by December 2016 it was again brought to zero to increase its availability in domestic market.
Agrimoney.com  Feb 21  Comment 
European rapeseed prices ease after palm oil price dip, while robusta futures rally as Brazil gets ready to import for the first time ever
Benzinga  Feb 21  Comment 
March Chicago Wheat is trading at 439 3/4, down 1 1/4 cents/bushel. May Chicago Wheat is trading at 454, down 1 1/2 cents /bushel. March Kansas City Wheat is trading at 454 1/4, down 2 cents/bushel. Wheat futures are trading rangebound and a...
Agrimoney.com  Feb 20  Comment 
The US cuts long-term forecasts for its share of world corn and wheat exports - even as worries grow over Mexico shifting orders to Brazil
Reuters  Feb 20  Comment 
India's wheat imports from Russia, France and Ukraine could come to a halt after March, as New Delhi has asked exporters to fumigate their cargoes with methyl bromide, an insect control gas banned in Europe and the Black Sea region.
Agrimoney.com  Feb 20  Comment 
Grain futures extend their losses from the previous session, ahead of the long US holiday weekend, while the cocoa rally proves short-lived


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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