Wheat Adds to Food Inflation
- Highlights
- Highlights Archive
- Economic Outlook for 2010
- Improved Internet Security
- Chart Pattern Recognition
- Consider Carbon Emissions
- What Next for Cable?
- Forex Spreads Cut
- Shares Awards 2009
- Shares Dealing Unaffected
- UK Earnings Season
- Lloyds Announces Rights Issue
- New Stock Index Markets
- Reduced Commodity Spreads
- What Moves the FTSE Mining Sector?
- Oil Breaches $80 Per Barrel
- Dow Breaks 10,000
- Weak Pound: Threat or Opportunity?
- Lower Deposits on 900 Major Shares
- Changes to Guaranteed Stops
- 24-Hour Dealing on Hong Kong HS42
- More Records for the FTSE?
- What Next for the Banking Sector?
- 'Best Online Provider' Award
- Extensive Market Analysis
- iPhone 3GS Dealing
- Consider Commodities
- Free Online Education
- Lower Share Deposits
- New-Look Website
- Forex Analysis
- Online Seminar Archive
- The Future of the Falling Pound?
- iGoogle Gadget
- Double Award Winners!
- Short Selling
- iPhone Charts
- 5.1 Million Trades in October!
- Best Spread Betting Firm - Again!
- Daily Research Emails
- Free Market-leading Charts
- Strength and Security
- Stay Safe in Turbulent Times
- Trading on Falling Markets
- New! Five-Minute Binaries
- IG Index was Still Trading!
- Where Next for GBP/USD?
- New Online Seminars
- New! Price Alerts
- More Awards for IG Index!
- Exchange Traded Funds
- Weekly Market Updates
- New! DealThru Charts
- Where Now for the Gold Price?
- High Street Blues
- Bungee Bets
- Where Next for House Prices?
- What Next for Oil Prices?
- Charting Success
- Refer-a-Friend
- Plan Your Trading Day
- Commodities Boom
- Food Prices Soaring
- Steady Rise in Oil Prices
- Trade our Differential Markets
- Chief Market Strategist
- New Content from Reuters
- Best Spread Betting Firm!
- Consider Your Options
- New Shares Binaries
- Be First With Reuters
- Chart the Euro/Dollar
- Bet on the Fear Index
- New: Daily US Tech 100
- Try our New Platform!
- Deal on your BlackBerry
- Latest Charts Upgrade
- Test Your Metal
- Global Stock Indices
- New Forex Spreads From Just 1 Pip
- Low Deposits
Wheat stockpiles are falling to their lowest levels for decades, pushing prices sky-high and creating potential trading opportunities, while food inflation is looking to challenge soaring energy costs as the biggest headache for world markets.
Soaring demand for wheat from developing nations and global droughts have meant that world wheat levels are at a 30-year low, and prices are riding high. Common Wheat prices in the US are up nearly 50% since August 2007, while Soybean futures prices jumped to $13.26 a bushel in Chicago trading from less than $7.50 a bushel last year.
Various factors affecting the price of wheat include:
- World wheat stockpiles at their lowest for 30 years, forcing prices up
- Increasing orders from foreign markets including South Korea, Taiwan, Mexico, Nigeria and Venezuela
- Spiralling oil prices
Risk protection on a range of commodities
So will wheat prices continue to spiral in response to global demand or are stocks likely to recover? IG Index offers spread bets on Chicago and London Wheat, Paris Milling Wheat and a range of other food commodities such as Soyabeans and Corn.
The volatility of these markets presents a unique opportunity for traders, with commodities often making sharp and sudden moves. For spread betters with IG Index, seeking to capitalise on these changes can be made safer with Guaranteed Risk Protection, which can guard against sudden losses.
Unlike conventional trading, spread betting allows you to profit from downward as well as upward trends depending on your predictions, while we also offer the ability to take smaller positions on commodities than are normally possible in underlying futures contracts.
For more information see our Dealing Handbook.
Updated: 21/02/08
The above comments do not constitute investment advice and IG Index accepts no responsibility for any use that may be made of them.
- Related Info
- Commodities Spreads
- Monday Morning Brief
Ready to spread bet?
Open an account online in minutes and start betting on commodities.
Apply Online