Oct. 30--The Commodity Futures Trading Commission plans to take formal action in its investigation into wheat futures trading by old Kraft businesses that are now part of Mondelez International, Kraft Foods said Thursday.
The activities relate to the trading of December 2011 wheat futures contracts.
The issue concerns trading that occurred before Kraft split into publicly-traded companies Kraft Foods Group and Mondelez International in late 2012. The activities involve a business that is now part of Mondelez or its affiliates. Still, as Kraft is cooperating with the commission in the investigation, it gave an update on the process in its quarterly report filed with U.S. regulators Thursday.
"In October 2014, the staff advised us that the CFTC intends to commence a formal action. We and Mondelez International continue to seek resolution of this matter," Kraft said in its filing.
A representative at Mondelez, which makes products such as Oreo cookies, declined to comment.
Earlier this year, Mondelez said the commission staff advised the company in March that it was prepared to recommend that the panel consider formal action. In August, Mondelez said it was seeking to resolve the matter before any action was taken.
Mondelez will bear the brunt of any penalties or payments that the commission may impose, Mondelez and Kraft have said.
Kraft, the maker of Oscar Mayer meats and Philadelphia cream cheese, does not expect the issue to have a material adverse effect on its finances or results.
jwohl@tribune.com
Twitter @jessicawohl
