Agrimoney.com  1 hr ago  Comment 
Ukraine's wheat acreage is going to remain at the same level as last year's poor showing, due to weather obstacles
Benzinga  5 hrs ago  Comment 
December Chicago Wheat is trading at 416 1/2, up 5 cents/bushel. March Chicago Wheat is trading at 435 3/4, up 3 3/4 cents/bushel. December Kansas City Wheat is trading at 419 1/2 , up 2 1/2 cents/bushel. Wheat futures are trading just under...
Agrimoney.com  5 hrs ago  Comment 
Recent rains, which are set to continue, provoke worries of Argentina's wheat quality falling short of hopes, extending a global trend...
Agrimoney.com  Oct 26  Comment 
Egypt's Gasc authority makes its biggest wheat purchase in nearly three years - but pays a little more for the grain, and for shipping it
Agrimoney.com  Oct 25  Comment 
Weaker grain quality, and disruption to Egyptian imports, may mean Russia's wheat exports don't rise quite as far as had been thought
Benzinga  Oct 25  Comment 
December Chicago Wheat is trading at 405 3/4, up 3 3/4 cents/bushel. March Chicago Wheat is trading at 428 1/4, up 3 3/4 cents/bushel. December Kansas City Wheat is trading at 416 1/2, up 4 cents/bushel. December Corn is trading at 350,...
Benzinga  Oct 24  Comment 
The USDA reported today that weekly export inspections for wheat as of October 20th totaled 240,331 tonnes. December Chicago Wheat is trading at 403, down 11 1/2 cents/bushel. March Chicago Wheat is trading at 424 3/4 down 10 1/4 cents/bushel....
WA Business News  Oct 24  Comment 
Investment in South-East Asia’s grain supply chain will be one way for Western Australian growers to avoid losing market share amid growing demand for wheat in the region, according to the head of a major Indonesian importer.
Agrimoney.com  Oct 21  Comment 
Is the wave of short-covering in grains over? Is fresh fund cash coming in? Will dollar strength sap exports? Markets stall amid such considerations


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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