QUOTE AND NEWS
Agrimoney.com  6 hrs ago  Comment 
Egypt's Gasc buys wheat below $200 a tonne, including shipping, as traders slash prices. The price of French wheat is down 10% in two weeks
Benzinga  7 hrs ago  Comment 
Wheat futures traded choppy on Wednesday before ending the trading day higher. September Chicago Wheat was trading at 502 1/4, up 8 3/4 5 cents and December Chicago Wheat was trading at 507 1/4, up 7 cents. September Kansas City Wheat was trading...
Benzinga  11 hrs ago  Comment 
Agrimoney.com  8 hrs ago  Comment 
Both Agritel and ODA peg the French wheat crop, the EU's biggest, at its highest ever, with dryness seen as coming too late to hurt yields
Agrimoney.com  Aug 5  Comment 
US officials, highlighting elevated wheat prices in Morocco, see the country's imports tumbling less far than some other commentators forecast
Agrimoney.com  Aug 4  Comment 
'Turnaround' Tuesday ended with a whimper, not a bang, as markets wait for new data, even as dryness fears loom
The Hindu Business Line  Aug 4  Comment 
Food Minister Ram Vilas Paswan informed the Lok Sabha on Tuesday that around 281 lakh tonnes (lt) of wheat has been procured for the central pool during the 2015-16 Rabi marketing season, marginal...
Benzinga  Aug 4  Comment 
Wheat futures are trading a little higher Tuesday morning. September Chicago Wheat is trading at 503 1/2, up 4 1/2 cents and December Chicago Wheat is trading at 510, up 5 cents. September Kansas City Wheat is trading at 492 3/4, up 3 3/4 cents...
Benzinga  Aug 4  Comment 
Insurance Journal  Aug 3  Comment 
Ag producers across South Dakota will now be able to insure their winter wheat crop for 2016. State Agriculture Secretary Lucas Lentsch says the U.S. Department of Agriculture recently decided to expand crop insurance coverage for winter wheat in...
Agrimoney.com  Aug 3  Comment 
The consultancy lifts its Russian wheat production estimate, as the harvest picks up pace after weather delays
Benzinga  Aug 3  Comment 
Wheat futures are trading lower Monday. September Chicago Wheat is trading at 491 1/4, down 8 cents and December Chicago Wheat is trading at 497 1/4, down 7 1/2 cents. September Kansas City Wheat is trading at 483 1/2, down 8 3/4 cents and...




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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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