Benzinga  3 hrs ago  Comment 
July Chicago Wheat is trading at 491 1/2, up 3 cents. September Chicago Wheat is trading at 496, up 3 1/2 cents and December Chicago Wheat is trading at 509 1/4, up 3 cents. July Kansas City Wheat is trading at 506, up 2 3/4 cents. September...
Agrimoney.com  5 hrs ago  Comment 
Canola futures start strongly, helped by ideas of further dryness in Canada. Soft wheat futures get help from rains delaying the US Midwest harvest
Agrimoney.com  Jun 19  Comment 
The influential group a the long series of upgrades for the world's biggest wheat harvest. It cuts its forecast for EU exports too
Benzinga  Jun 19  Comment 
Wheat futures traded range-bound and choppy on Friday. Kansas City wheat closed higher and Chicago wheat was little changed. July Chicago Wheat settled at 488 1/4, up 1/2 of a cent. December Chicago Wheat settled at 492 1/2, down 3/4 of a cent....
Benzinga  Jun 18  Comment 
July Chicago Wheat is trading at 496, up 4 3/4 cents. December Chicago Wheat is trading at 515 3/4, up 5 cents. July Kansas City Wheat is trading at 508, up 2 1/2 cents. December Kansas City Wheat is trading at 536, up 2 1/4 cents. Trading is...
Benzinga  Jun 18  Comment 
Agrimoney.com  Jun 18  Comment 
Dry weather in Europe has lifted rapeseed, while arabica hits a two-week low
The Economic Times  Jun 17  Comment 
There is procurement arrangement for wheat and rice and not for pulses and oilseeds. This issue needs to be addressed if the government aims to increase domestic output.
The Hindu Business Line  Jun 16  Comment 
Food Corporation of India is committed to enhancing the procurement of wheat in eastern states, including UP region, and ensure benefit of minimum support price (MSP) to small and marginal...
Agrimoney.com  Jun 16  Comment 
The EU's top wheat producer will not, after all, see a large rise in inventories, with merchants succeeding in finding buyers for a low-quality crop


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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