QUOTE AND NEWS
Reuters  6 hrs ago  Comment 
Algeria is negotiating to buy milling wheat for shipment in March and possibly April after launching an international tender, European traders said on Tuesday.
Agrimoney.com  Jan 25  Comment 
Corn ends higher, after being on the right side of an reemerging passion in Chicago for spread positioning. Soybeans and wheat feel the sharp end
Agrimoney.com  Jan 25  Comment 
Growing Canadian use is buoying oats prices while rain in Saudi Arabia has further cut hopes for barley, Australia's top grain handler says
Commodity Online  Jan 25  Comment 
Wheat and allied products exporting from India slipped sharply for the last one month due to the high domestic prices for the grain.
Commodity Online  Jan 25  Comment 
In an attempt to offset Pakistan s commodity financing shortfall in 2010 country s central bank suggested to reduce wheat procurement target by 2 million tons for upcoming Rabi crop.
Commodity Online  Jan 25  Comment 
US acreage under wheat cultivation for 2010 is expected to decline while soybean and corn acreage likely to go up predicted by US based private analytical firm Informa Economics.
Commodity Online  Jan 25  Comment 
Wheat reserves under bulk stockiests and grain traders rose by 7.77 million metric tonnes in Australia to 17.77 million tonnes as on December 31 said the government s Bureau of Statistics data.
The Hindu Business Line  Jan 24  Comment 
The All-India Fair Price Shop Dealers' Federation has reacted sharply to the high prices fixed for rice and wheat released as additional quota by the Union Government for supply through the Public Distribution
Commodity Online  Jan 23  Comment 



Thank you for your suggestion
 


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

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. 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