QUOTE AND NEWS
The Hindu Business Line  11 hrs ago  Comment 
Will help breeders produce better quality cereal
SeekingAlpha  Jul 20  Comment 
By Grant Dossetto: Since May grains have been trapped in a classic downtrend. For almost a quarter, three of every four days have seen wheat and corn fall. Wheat is now at four year lows. Could it continue to falter? The answer to that is of...
The Economic Times  Jul 18  Comment 
It also said the continuous mono-cropping is affecting soil health. Farmers are growing those crops on which states fix bonus.
Agrimoney.com  Jul 18  Comment 
Wheat prices make some further gains amid concerns over the Ukrane plane crash spurring regional turmoil. But soy, cotton are reluctant to follow
Red Orbit  Jul 18  Comment 
redOrbit Staff & Wire Reports - Your Universe Online An international team of researchers has successfully completed the chromosome-based draft of the bread wheat genome, giving them the first-ever genetic blueprint of the crop grown on over...
Agrimoney.com  Jul 17  Comment 
Wheat futures rally as the Ukraine plane crash spurs fears of regional tensions. But benign US weather weighs on corn, soy. Sugar hits a 5-month low
Agrimoney.com  Jul 17  Comment 
Wheat prices jump in Chicago and Paris after the apparent downing of a Malaysia passenger plane in Ukraine revives concerns over regional unrest
Agrimoney.com  Jul 17  Comment 
"Grains quality and even yields could deteriorate significantly" if rains persist, the influential anakysis group says




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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

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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