NORTHFIELD, ILLINOIS, U.S. — Kraft Foods Group Inc. in a May 2 filing said it is being investigated by the Commodity Futures Trading Commission (CFTC) over activities related to the trading of December 2011 wheat futures contracts. The activities arose prior to Kraft’s spin-off from Mondel?z International in September 2012 and involve the business now owned and operated by Mondel?z or its affiliates.
“We are cooperating with the staff in its investigation,” Kraft said in the filing. “While the staff has advised us that they are prepared to recommend that the Commission consider commencing a formal action, we and Mondel?z International are seeking to resolve this matter prior to any formal action being taken.”
The business involved in the trading now is owned by Mondel?z, and according to Kraft, Mondel?z will bear most of the costs and any monetary penalties or other payments that the CFTC may impose.
“We do not expect this matter to have a material adverse effect on our financial condition or results of operations,” Kraft said.
The filing gave no further details about the investigation, and Kraft has declined to comment beyond what was said in the filing.
Since Russia’s invasion of Ukraine in February, the world’s wheat supply has been thrown into question, with poorer nations facing scarcity and a potential food crisis, according to the United Nations.
Following are countries among the world’s least developed that are the most dependent on Russia and Ukraine for their annual wheat supply (2020), according to the UN Conference on Trade and Development. Nations in Africa import 44% of their wheat from Russia and Ukraine, according to the UN.
In marketing year 2022-23, the world is projected by the US Department of Agriculture (USDA) to produce 779.03 million tonnes of wheat and provide 204.89 million tonnes for export.
These are the eight major wheat importing nations/regions as listed in the monthly USDA World Agricultural Supply and Demand Estimates (WASDE) report and their annual tonnes with production.
Russia’s invasion of Ukraine in February and the persistent La Niña climate phenomenon have combined to create some of the most volatile market conditions in recent memory, sending prices skyrocketing as nations that depend on wheat to feed their populations scramble to secure supplies.
Each month, the WASDE releases new projections to reflect the most recent global market and production conditions, and this slideshow will be updated with those changes.