QUOTE AND NEWS
Agrimoney.com  11 hrs ago  Comment 
Egypt, the top wheat importer, buys from Romania and Russia at its latest tender. But French wheat is offered too, for the first time since early July
The Hindu Business Line  Aug 26  Comment 
Food Corporation of India has sold 1.54 lakh tonnes of wheat between August 7 and 21 to millers across 26 States through the NCDEX Spot Exchange. The price ranged between Rs 1,500 and Rs 1,836 a q...
Agrimoney.com  Aug 26  Comment 
The US is poised for more of the rainfall which, while boosting corn and soybean yield hopes, is for wheat slowing harvest and lifting quality worries
Agrimoney.com  Aug 26  Comment 
The soy complex retreats, amid ideas that US cash market strength may fail. But wheat gains, with Egypt in the market, and US crop condition falling
Commodity Online  Aug 26  Comment 
The auctions were again conducted on the NPSOT platform after completing a successful pilot last year, in which FCI sold 17 lakh tonnes of wheat through seven e auctions
New York Times  Aug 25  Comment 
Wheat berries add texture and substance to this light summer soup, and provide a treat at the bottom of the bowl.
The Economic Times  Aug 24  Comment 
The CACP has submitted its minimum support price (MSP) proposals of wheat and other winter crops for 2014-15 rabi season.
Agrimoney.com  Aug 22  Comment 
US wheat promoters urge importers to "pay close attention" to soft red winter wheat specifications after tests reveal high vomitoxin levels




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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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