Benzinga  Jul 29  Comment 
September Corn is trading at 331 1/2, up 1/4 of a cent/bushel. December Corn is trading at 339 1/4, up 1/4 of a cent/bushel. September Chicago Wheat is trading at 404 , down 6 1/4 cents/bushel. September Kansas City Wheat is trading at...
Agrimoney.com  Jul 29  Comment 
Both the International Grains Council and Buenos Aires grains exchange cut plantings estimates, although to widely-varying figures
NPR  Jul 28  Comment 
Most people know not to eat raw cookie dough. But now it's serious: 46 people have now been sickened with E. coli-tainted flour. Here's how contamination might be occurring.
Agrimoney.com  Jul 28  Comment 
Results of a tender by Egypt's Gasc authority show contrary moves in Romanian and Russian wheat prices - and a dearth of offers from France
Benzinga  Jul 28  Comment 
September Chicago Wheat is trading at 418 3/4, up 4 cents/bushel. December Chicago Wheat is trading at 445 1/4, up 3 3/4 cents/bushel. September Kansas City Wheat is trading at 416 1/2, up 4 cents/bushel. Wheat futures are trading just under...
Agrimoney.com  Jul 28  Comment 
Rabobank raises the bar on forecasts for Australian wheat production, but cautions over rains which officials say are should stay abundant
Agrimoney.com  Jul 28  Comment 
Wheat futures make ground, as the top importer re-enters the market. Will gains stick this time? But cotton futures fall, touching limit down in China
Benzinga  Jul 27  Comment 
September Chicago Wheat is trading at 417 1/4, up 2 1/4 cents/bushel. December Chicago Wheat is trading at 444, up 2 cents/bushel. September Kansas City Wheat is trading at 413 3/4, up 1 3/4 cents/bushel. Wheat futures are trading a little...
Agrimoney.com  Jul 27  Comment 
Spring wheat futures gain, after early results of US crop tour reveal below-average yield prospects. Cotton futures rest after soaring last time


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