One can be forgiven for assuming wheat is mostly consumed by humans since it is an integral ingredient in several staple foods like bread, pasta, noodles, pancakes, porridge, biscuits, crackers, cookies, cakes, beer, vodka and the list goes on. Fact of the matter is, the usage of wheat as food component only represent 58% of its global demand. The rest is used in the creation of biofuels and other derivatives for various industries.
Based on archeological findings, wheat was first cultivated in Southern Levant, Western Asia during the 9600 BCE. Further analysis of wild einkorn wheat specified the Karacadag Mountains in Southeastern Turkey as the place where it was first grown.
From Asia, it spread across the world via Europe where other uses for the crop such as for roofing purposes during the Bronze Age, was also invented.
Today, wheat is grown on more than 540,000,000 acres of land around the world with the whole of Europe, China, India, Canada and the United States being the biggest producers.
Contract Ticker Symbol: W
Underlying Commodity: Premium Wheat
Electronic Ticker: ZW
Contract Size: 5000 Bushels
Price Valuation: $0.0025/bushel ($12.50 per contract)
Trading Months: March, May, July, September and December
What is a bushel?
A bushel is a US customary and imperial unit of volume based from an earlier method of measurement of dry state. In US measurement, one bushel is equal to 64 pints or 35.2 liters for dry goods. In British measurement, one bushel is equal to 8 imperial gallons or 36.4 liters.
Like other commodities, there are several factors that may affect the price of this agricultural commodity. Here are the main ones:
Like soybeans and corn, wheat is considered as an agricultural commodity that remains integral to global food production, thus causing wide appeal in the commodities market for investors to trade for them.
Here are a few takeaways on why agricultural commodities continue to be an attractive investment choice:
Investors always look at commodities as an appealing investment option despite the volatility it brings.
Betting on the future price of a leading agricultural commodity like wheat may come with its own share of risks. Nevertheless, it also provides a greater chance of achieving high yields.
Simply say, if the supply of a commodity goes down while demand drives up, you as the investor wins. If the opposite happens, then it could mean suffering some losses.
Here are the different ways on how you can invest on wheat:
Engaging in CFD trading has never been easier than today. All you need to do choose a reliable broker or sign up on a CFD trading platform such as eToro to open an account and deposit your fund.
Investing on this commodity via the eToro's CFD trading platform doesn't require any storage fees since you won't be trading any physical assets.
Currently, qheat has a 52-week range of $721.88 - $774.13 and a one-year return of 31.27%. Historically, Wheat reached an all-time high of $ 1,334.50 in February 2008.
The market value of wheat when this page was accessed is
If you're considering to invest or trade WHEAT CFDs, then it would be much simpler to click the button below. This will take you directly to eToro's trading page for this commodity.
But before you can trade wheat on eToro, you'll need to open an account with them and this will only take a few minutes to accomplish.
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