Agrimoney.com  5 hrs ago  Comment 
Minneapolis futures gain against Chicago, on brisk export demand for high-protein wheat, while soybeans trim gains
Benzinga  10 hrs ago  Comment 
March Chicago Wheat is trading at 426 1/4, down 4 3/4 cents/bushel. May Chicago Wheat is trading at 440 3/4, down 5 1/4 cents/bushel. March Kansas City Wheat is trading at 445 1/2 , down 6 3/4 cents/bushel. Wheat futures are trading just above...
Agrimoney.com  11 hrs ago  Comment 
The IGC, in its first estimate for world wheat output next season, pegs it at the third biggest ever, with India making up for weak US sowings
Agrimoney.com  Jan 19  Comment 
... but they will not return to recent highs above 30m tonnes, the analysis group says, warning of some frost damage to crops
Agrimoney.com  Jan 18  Comment 
Shares slump in the owner of brands such as Oxo after it cuts profit hopes, citing rising crop costs - as London wheat futures hit a two-year high
Benzinga  Jan 18  Comment 
March Chicago Wheat is trading at 434, up 1/2 of a cent/bushel. May Chicago Wheat is trading at 448 1/2, up 1/4 of a cent/bushel. March Kansas City Wheat is trading at 451 3/4, down 1/4 of a cent/bushel. Wheat futures are trading rangebound....
Agrimoney.com  Jan 17  Comment 
... on their own. The plethora of existing supplies should leave buyers still spoilt for choice. Still, the weak plantings offer grain bulls hope
Forbes  Jan 17  Comment 
A study has found that more Americans are turning their backs on eating gluten despite the fact that the prevalence of celiac disease has remained flat since 2009. Celiac disease is an autoimmune disorder affecting the small intestine, caused by a...
Agrimoney.com  Jan 17  Comment 
Both soy and hard wheat contracts rallied late last week on bullish official US data. But fund statistics help bring the hard wheat rally to a halt


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

Error creating thumbnail

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, 2011, 2012. 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