The Economic Times  5 hrs ago  Comment 
FCI as well as state agencies undertake procurement operation at the MSP. They have set a target to buy 330 LT wheat this year as against 229.6 LT in 2016-17.
The Hindu Business Line  Apr 16  Comment 
Higher procurement and risk of increase in import duty likely to hold up prices
The Economic Times  Apr 14  Comment 
Incidents of standing wheat crop being burnt to cinder across hundreds of acres in Punjab and Haryana have come to light in the past 10 days, just ahead of the harvest.
Agrimoney.com  Apr 13  Comment 
Agritel and Strategie Grains flag rain shortfalls in parts of the EU, the top wheat grower, while raised Turkish buying helps export hopes
Agrimoney.com  Apr 13  Comment 
Wheat prices ease as investors voice concerns on the slow pace of US shipments, while cocoa futures plumb new lows on weak demand
Agrimoney.com  Apr 13  Comment 
Analysts note increased dryness concerns in France and elsewhere, while increased Turkish buying helps export hopes
DailyFinance  Apr 11  Comment 
Filed under: News, Politics, Election It's been 22 years since a Democrat last represented Kansas' 4th congressional district, which is dominated by wheat fields and airplane factories around metropolitan Wichita. Read...
Agrimoney.com  Apr 11  Comment 
A ban on Russian imports, and a slumping currency, discourages stock-holding in the world's largest flour exporter, US officials say
Agrimoney.com  Apr 11  Comment 
Weather setbacks keep early US sowings progress behind market expectations - and more rain is forecast. But the moisture is helping winter wheat
Agrimoney.com  Apr 10  Comment 
The huge shakeup of China's agricultural system is diving wheat sowings to recent-highs, while corn stockpiles finally start to ease


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, 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