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
here
and 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.
