QUOTE AND NEWS
The Economic Times  May 27  Comment 
Factory-made bread, ‘untouched by human hands’ as ad campaigns promised, was a shining white sign of pure and healthy bread. But making bread white has never been easy.
Agrimoney.com  May 27  Comment 
French wheat condition, while still strong, falls well behind year-ago levels, amid growing talk of disease. Still, other EU crops are improving
Agrimoney.com  May 26  Comment 
Fresh bearish fundamental news did nothing to stem a short-covering rally in wheat, while sugar jumps up as rains head for Brazil's cane belt
Agrimoney.com  May 26  Comment 
... removing the threat of a sharp build in stocks, fears of which drove prices to their lowest since 2010, official data show
The Economic Times  May 25  Comment 
“On an average, of the number of breads we sell, 50% is white bread, 35% is wheat and the rest 15% is multigrain,” said Mukesh Singh, founder of ZopNow.
Agrimoney.com  May 25  Comment 
Brazilian wheat prices are soaring, lifted by a knock-on effect of a squeeze on corn supplies, and contrasting with flat global markets
Reuters  May 25  Comment 
Indian flour mills have signed deals to import about 500,000 tonnes of Australian and French wheat this year for shipment between July and September as drought reduces domestic supplies, two trade sources said on Wednesday.
The Hindu Business Line  May 24  Comment 
Inspection agencies have been directed to tighten vigil for Karnal bunt in the case of 21 countries which have officially notified a ban on import of wheat infected with the fungus. The directive co...
Agriculture Online  May 23  Comment 
Crops › Wheat News › Crops Byline: Bill Spiegel High Plains crop producers are beginning to get frustrated at the recent...
Southeast Farm Press  May 23  Comment 
Scott Miller, Clemson University The invasive aphid was found attacking wheat in Hampton County, South Carolina. The pest was found in a Georgia greenhouse in 2012 and in an Alabama wheat field last year. read more




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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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