QUOTE AND NEWS
Reuters  May 12  Comment 
Private Indian millers are showing increasing interest in French wheat due to its competitiveness on world markets, with traders reporting recent sales of up to 150,000 tonnes, but phytosanitary constraints are slowing exports, they said.
USDA NASS  May 10  Comment 
Winter Wheat Production Up 4 Percent from 2015. Orange Production Up 4 Percent from April Forecast...
Agrimoney.com  May 10  Comment 
Wheat imports to Sub Saharan Africa are growing faster than those to the traditional top importers, Algeria and Egypt, Rabobank said
The Hindu Business Line  May 9  Comment 
Wheat output seen 9 per cent higher at 94 million tonnes
Agrimoney.com  May 6  Comment 
The UK's wheat market will not be balanced this year, as exports disappoint, and imports remain stubbornly high
Agrimoney.com  May 5  Comment 
Soymeal leads the grain complex lower, as the dollar extends its rally, while overbought sugar futures plunge
Agriculture Online  May 5  Comment 
Crops › Wheat News News › Crops Byline: Bill Spiegel The 2016 Kansas wheat crop could total 382.4 million...
Agriculture Online  May 5  Comment 
Reuters  May 5  Comment 
Russia's grain-quality watchdog said on Thursday Bangladesh had violated international trading standards in the way it tested samples of imported Russian wheat.
Agrimoney.com  May 5  Comment 
Rapid exports, spurred by the weak loonie, are expected to draw down wheat inventories to record lows, even as production recovers
Agriculture Online  May 4  Comment 
Crops › Wheat News News › Crops Byline: Bill Spiegel Day 1 of the 2016 Winter Wheat Tour is complete, and...




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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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