QUOTE AND NEWS
Agrimoney.com  8 hrs ago  Comment 
Chicago soybean futures, having been spotted following Dalian peers, find trailing them again tricky. Corn, wheat dip. But what of a Russian freeze?
Agrimoney.com  11 hrs ago  Comment 
Soybeans will also remain under pressure from heavy production next year, but the outlook for rapeseed is more positive thanks to tight supply
Benzinga  Dec 7  Comment 
March Chicago Wheat is trading at 404 3/4, down 2 cents/bushel. May Chicago Wheat is trading at 417 1/4, down 2 cents/bushel. March Kansas City Wheat is trading at 404 1/2 , down 1/2 of a cent/bushel. Wheat futures are trading ja little lower....
The Economic Times  Dec 7  Comment 
Private traders have imported 1.72 million tonne (MT) wheat so far and total inbound shipments are expected to cross 2 MT this year.
Agrimoney.com  Dec 6  Comment 
But prices fall back, as wheat comes under pressure from Canadian crop outlook, while sugar bounces back
Agrimoney.com  Dec 6  Comment 
The crop gets a big upgrade, but snow delays meant the latest government forecasts are still uncertain
The Economic Times  Dec 6  Comment 
He also said the Indian Council of Agricultural Research (ICAR) is hastening research on developing new wheat varieties to cope with high temperature due to climate change.
Agrimoney.com  Dec 5  Comment 
The recovery in hog futures means they have already done much of the work to needed to implement index fund weightings, SocGen says
Agrimoney.com  Dec 5  Comment 
But are hedge funds overegging the pudding in, say, going record net long on cotton? For soybeans, Argentine weather looks key
Benzinga  Dec 5  Comment 
March Chicago Wheat is trading at 406 1/4, up 2 cents/bushel. May Chicago Wheat is trading at 418 1/2, up 1 1/2 cents/bushel. March Kansas City Wheat is trading at 409 1/2 , up 3/4 of a cent/bushel. Wheat futures are trading rangebound. Market...




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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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