Wheat Commodities Project Denise and Moly

Wheat MarketMoly Fang & Denise Chung

Background

• Goods made from wheat– Pasta, cereal, bread, cake, wine,

food for animals• Measured in MMT, million metric

tons

• Mostly produced by small farmers

• Companies would process and make it into finer products

• Traded at the Minneapolis Grain Exchange, U.S.

Background

• And other smaller markets all over the world

* U.S., Canada, Australia, Argentina, and EU-27

Wheat Production

• China is a major wheat producer• Henan, Shandong and Hebei produce more

than 50 percent of the national crop

Price History

What causes the price to rise?

Factors that affect the Global Wheat Market in

08/09

1. Low in stock2. Favorable weather3. Global demand increases

Interveners

Regulations or Policies• International Grain Agreement

Price band on WheatInfluence of Quota on Wheat

Regulations or Policies• Peru Trade Promotion Agreement

Influence of tariff elimination

Bibliography• "Climate Investing:Wheat goes parabolic:"Highest Price in US history"."

Investing Climate. 28 Oct 2008 <http://climateerinvest.blogspot.com/2008/02/wheat-goes-parabolic-highest-price-in.html>

• "National Association of Wheat Growers". National Association of Wheat Growers. 28 Oct 2008

• <http://www.wheatworld.org/index.cfm>• "U.S, Wheat Associates". U.S, Wheat Associates. 28 Oct 2008

<http://www.uswheat.org/>• MGEX - Minneapolis Grain Exchange. Minneapolis Grain Exchange. 29 Oct. 2008

<http://www.mgex.com/index.cfm>• "China." Wikipedia. 29 Oct 2008 <http://zh.wikipedia.org/wiki/%E5%B0%8F

%E9%BA%A6>• "Home Page". International Wheat Organization. 29 Oct 2008

<http://www.igc.org.uk/en/aboutus/default.aspx>

Bibliography• “United States Department of Agriculture-Home”. United States Department of

Agriculture. 31 Oct 2008<http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?navtype=MA&navid=HOME>

• "U,S,-Peru Trade Promotion Agreement FAS factsheets." USDA Foreign Agricultural Service(FAS). United States Department of Agriculture. 31 Oct 2008 <http://www.fas.usda.gov/info/factsheets/peru.asp#Wheat_and_Barley>

• "Wheat." Corbis. 2 Nov 2008 <http://pro.corbis.com>