Business

Kraft accused of wheat price fixing

Kraft sign Image copyright AP

US food giant Kraft is being accused of manipulating the price of wheat.

The US Commodity and Futures Commission (CTFC) alleges it and its former subsidiary Mondelez Global bought $90m (£61m) of wheat futures but had no intention of taking delivery of it.

The CTFC said their huge purchase raised the price of the commodity and earned them a profit of $5.4m.

Kraft recently agreed a merger with Heinz in a move that would create the world's fifth largest food company.

The regulator wants to apply a permanent injunction on future violations as well as to apply financial penalties.

In 2010, Kraft took over chocolate maker Cadbury, but in 2012 spun the firm off as part of its global snacks business Mondelez, which includes brands such as Oreo biscuits and Trident gum.

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