QUOTE AND NEWS
The Hindu Business Line  4 hrs ago  Comment 
Lakshman Singh of Kharkhra village, close to Rohtak, Haryana, gets distracted by the camera as he ploughs his land. He is busy turning the soil to get it ready for sowing Rabi wheat crop Photo:Kama...
The Economic Times  Dec 12  Comment 
About USD 10 billion concessional loan extended to African nations in 2015, the minister exhorted his Nigerian counterpart to take benefit of the line of credit.
Biomass Magazine  Dec 11  Comment 
The Energy Research Center of the Netherlands has developed a novel process to fractionate biomass such as hardwood chips and wheat straw.
Reuters  Dec 11  Comment 
Chicago's iconic sandwiches - Italian beef heroes dripping with gravy, and hot dogs loaded with pickles and hot peppers - wouldn't be such culinary institutions without the bread.
The Economic Times  Dec 10  Comment 
According to the data, sowing of wheat is nearing to complete in Punjab and Haryana, while substantial area is yet to be planted in other growing states.
The Hindu Business Line  Dec 8  Comment 
At 443 lakh hectares, total cultivated area down 1% over last year
New York Times  Dec 7  Comment 
Baby cereals made with oatmeal, barley, buckwheat, organic quinoa and wheat contained much lower amounts of inorganic arsenic than rice cereals.
The Hindu Business Line  Nov 29  Comment 
Tariff and trade policy changes in respect of pulses and wheat announced by the Union government recently to support the domestic market have sent unsettling ripples across the world grain trade, but...
Reuters  Nov 29  Comment 
India's production of wheat and pulses is expected to jump in 2018 as a hike in the government's assured purchase prices and ample rainfall have prompted farmers to plant more of the winter crops, industry officials told Reuters.




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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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