LONDON, June 23 (Reuters) - ** Nestle could benefit from the steep drop in wheat prices as falling costs give margins a boost.
** Last week, western European wheat prices hit 4-month lows
** Wheat, corn and now soya - the major chunk of Nestle's cost base - all on the backfoot, points out Hobart Capital's Justin Haque.
** That means the company's costs have been cheaper than expected for over a month, says Haque.
** Company reports on July 8 & no major revision activity from analysts seen yet.
** Nestle's shares are up by around 7 percent since the start of 2014, roughly in line with a 6 percent rise on Zurich's benchmark SMI equity index and a similar gain of around 6 percent on the pan-European FTSEurofirst 300 index.
** In April, Nestle said it expected sales growth to pick up in the next few quarters.
** European food and beverage stock equity returns graphic:
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