Posted May 6, 2014
Kraft Foods Group Inc. said that U.S. regulators were investigating wheat futures trading by parts of the business now owned and operated by Mondelez International, Inc., according to a Yahoo Finance article available here. Reuters and Bloomberg also reported on the story hereand here.
Kraft said the investigation by the Commodity Futures Trading Commission was centered on activities related to trading of December 2011 wheat futures contracts.
“While the staff has advised us that they are prepared to recommend that the Commission consider commencing a formal action, we and Mondelez International are seeking to resolve this matter prior to any formal action being taken,” Kraft said in the filing.
“We do not expect this matter to have a material adverse effect on our financial condition or results of operation,” said Kraft.
Wheat futures in the “second half of 2011 gain 12% as drought afflicted the U.S. southern Great Plains. Production of the hard-red winter wheat, grown in the southern Plains and used to make bread, in the 12 months that started on June 1, 2011, totaled 780 million bushels, which was the lowest in five years, according to” USDA.
For more information on agricultural commercial transactions, please visit the National Agricultural Law Center’s website here.
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