QUOTE AND NEWS
Benzinga  3 hrs ago  Comment 
Wheat futures have extended early losses Friday during a choppy trading day. September Chicago Wheat is trading at 547 1/2, down 14 3/4 cents and December Chicago Wheat is trading at 557 1/2, down 13 1/2 cents. September Kansas City Wheat is...
Benzinga  Jul 16  Comment 
Wheat futures are trading a little lower Thursday morning. September Chicago Wheat is trading at 562 1/2, down 4 1/4 cents and December Chicago Wheat is trading at 569 1/2, down 5 cents. September Kansas City Wheat is trading at 553 1/4, down 5...
Benzinga  Jul 15  Comment 
Wheat futures are trading a little lower Wednesday morning. September Chicago Wheat is trading at 564 3/4, down 6 1/4 cents and December Chicago Wheat is trading at 571, down 5 1/2 cents. September Kansas City Wheat is trading at 554 3/4, down 6...
Agrimoney.com  Jul 14  Comment 
Despite a slow start to the harvest, and a new export tariff, Russian wheat was offered for below $200 a tonne
The Hindu Business Line  Jul 14  Comment 
They do not enjoy the procurement, marketing and R&D support extended to wheat and rice. This must change
The Hindu Business Line  Jul 14  Comment 
Wheat procurement by State agencies and the Food Corporation of India has crossed last year’s total mark of 280.23 lakh tonnes (lt) during the current Rabi marketing season.
The Economic Times  Jul 14  Comment 
The Food Corporation of India (FCI) had set the wheat procurement target of 30 million tonnes for this season. Wheat procurement begins from April.
Benzinga  Jul 14  Comment 
Wheat futures are trading steady to a little higher Tuesday morning. September Chicago Wheat is trading at 578 3/4, up 3 cents and December Chicago Wheat is trading at 583 1/2, up 1 1/2 cents. September Kansas City Wheat is trading at 568, up 3/4...
Benzinga  Jul 14  Comment 
Benzinga  Jul 13  Comment 
Wheat futures are trading steady to fractionally lower Monday morning. September Chicago Wheat is trading at 575, down 1 cent and December Chicago Wheat is trading at 581 3/4, down 1 3/4 cents. September Kansas City Wheat is trading at 571 1/4,...
The Economic Times  Jul 13  Comment 
State-run Food Corporation of India has procured 27.6 MT of wheat in the 2015-16 marketing season, marginally lower than 28 MT last year.




RELATED WIKI ARTICLES
 


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