QUOTE AND NEWS
Agrimoney.com  May 8  Comment 
Ag prices, broadly, post gains, with even some talk of inflation to help buying. Coffee, gets extra help from Brazil's real, and wheat from US fears
The Economic Times  May 8  Comment 
Wheat procurement so far is also 3 per cent more than what was purchased in corresponding period last year.
Benzinga  May 8  Comment 
Wheat futures are trading a little higher Friday morning. July Chicago Wheat is trading at 4741/2, up 1 3/4 of a cents. July Kansas City Wheat is trading at 501 1/2, up 1 3/4 cents. Market talk that EU granted export licenses for over 270,000...
Benzinga  May 8  Comment 
Agrimoney.com  May 8  Comment 
The south US Plains, long desperate for rain, may now receive too much, with talk of 9 inches in parts - and cold too. Palm oil gives back some ground
Agriculture Online  May 7  Comment 
If the Wheat Quality Council's Winter Wheat Tour projection holds, the Kansas wheat crop will total 289 million bushels and farmers will reap about 35.9 bushels per acre. That's the averaged guess of the 92 participants, after two-and-a-half days...
Agrimoney.com  May 7  Comment 
The United Nations FAO, in its first world grains forecast in 2015-16, foresees "fairly comfortable" corn supplies and an "overabundance" of wheat
Benzinga  May 7  Comment 
Wheat futures are little changed Thursday morning after Wednesday's move higher. July Chicago Wheat is trading at 479, down 1/4 of a cents. July Kansas City Wheat is trading at 504, up 1/2 cent. Chatter about reduced production in Canada and...
Benzinga  May 7  Comment 
The Economic Times  May 7  Comment 
Officials said that out of the total arrival of 63,26,064 metric tonnes, 63,25,844 metric tonnes of the crop have been procured on MSP and the remaining was mopped up by traders.
Agrimoney.com  May 7  Comment 
Wheat futures find it hard going to build on the last session's gains, amid ideas of a fund impasse. Corn, palm oil find direction - downwards




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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

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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