QUOTE AND NEWS
New York Times  6 hrs ago  Comment 
DNA from an underwater site suggests wheat made its way from the Neolithic farmers of Southern Europe to the Mesolithic hunter-gatherers of Britain.
The Hindu Business Line  7 hrs ago  Comment 
The unseasonal rains in Maharashtra over the last three days have destroyed crops spread across 17,000 hectares with losses mounting to ₹1,000 crore. Crops such as jowar, wheat, mango, grapes...
Benzinga  8 hrs ago  Comment 
Wheat Futures are trading lower Monday. May Chicago Wheat is trading at 507 3/4, down 5 3/4 cents. July Chicago wheat is trading at 511 1/4, down 5 cents. May Kansas City Wheat is trading at 536 3/4, down 3 1/4 cents. Trading is choppy and...
Benzinga  Mar 2  Comment 
The Economic Times  11 hrs ago  Comment 
Punjab and Haryana, which are major foodgrain growing states, have about 35 lakh hectares and 25 lakh hectares of area, respectively, under wheat in the current rabi season.
Agrimoney.com  Mar 2  Comment 
India's wheat exports will hit a four-year low in 2015-16, as output declines, amid concerns over soil salinity and seed "fatigue", US officials say
Agrimoney.com  Mar 2  Comment 
ANZ, citing northern hemisphere crop threats, sees "upside" risks to wheat prices. But for cotton and sugar, price prospects look less promising
Benzinga  Feb 27  Comment 
The USDA reported that weekly export sales for wheat was 459,000 tons. Market talk about global production estimates from International Grains Council is showing some updated grain production estimates. Market chatter that its global wheat...
Agrimoney.com  Feb 27  Comment 
The Russian farm operator says it has already written off 11% of its winter wheat. But it is underlines some fillips to spring sowings prospects
Benzinga  Feb 26  Comment 
USDA weekly wheat export sales are due out Thursday morning. Estimates are for 300,000 tons of wheat. Market talk about better weather for crops in the U.S. and Europe along with increased competition from other global exporters continues to bring...
The Economic Times  Feb 26  Comment 
Private traders can export wheat under the open general licence (OGL) scheme, Food Secretary Sudhir Kumar told PTI.




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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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