Agrimoney.com  10 hrs ago  Comment 
Poor wheat export data bode ill for prices in a country with huge stocks of the grain to clear, a leading commentator says
Benzinga  Mar 16  Comment 
Wheat futures are trading higher Monday. There is a lot of talk about weather in the U.S. and the Black Sea region. May Chicago wheat is trading at 505, up 3 cents. July Chicago wheat is trading at 507 1/2, up 4 1/4 cents. May Kansas City Wheat...
Benzinga  Mar 16  Comment 
Agrimoney.com  Mar 16  Comment 
Wheat's rally goes into reverse, as investors bank profits ahead of the weekend. Corn and soybeans drop too. But not by as much as sugar...
The Economic Times  Mar 15  Comment 
The met department forecast rain and snow to continue over Jammu and Kashmir, Himachal Pradesh and parts of Uttarakhand over the next 24 hours.
The Hindu Business Line  Mar 13  Comment 
inflationary budget leaves deficit of ₹848 crore
Benzinga  Mar 13  Comment 
Talk of weather continues to support prices; no rain in the short-term forecast has brought in buyers. Weekly export sales were better than expected and chatter about demand from china has been supportive. USDA weekly wheat export sales were...
Agrimoney.com  Mar 13  Comment 
Markets feel pre-weekend caution. Wheat is flat despite continued fears over dryness for US winter wheat areas. Corn, soy fall amid demand concerns
Commodity Online  Mar 13  Comment 
FAO forecasts that production for the year would amount to 720 million tonnes, or one percent below the record output of 2014.
Agrimoney.com  Mar 12  Comment 
Soybeans and wheat futures gain, helped by weather worries in the US and Argentina. Cotton gains too. Can it end its worst losing streak since 2013?


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

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