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Wheat ETF (WEAT) Hit a 52-Week High
For investors seeking momentum, Teucrium Wheat ETF (WEAT - Free Report) is probably on radar. The fund just hit a 52-week high, and is up 59.2% from its 52-week low of $5.76 per share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
WEAT in Focus
The underlying WHEAT FUTURES looks to reflect the daily changes of a weighted average of the closing prices for 3 futures contracts for wheat that are traded on the CBOT: the second-to-expire contract, the third-to-expire contract and the contract expiring in the Dec. following the expiration month of the third-to-expire contract. The expense ratio of WEAT is 1.91%.
Why the Move?
Wheat prices rose due to Russia’s incursion into Ukraine. Both areas are rich in wheat production and account for about 29% of the global wheat export market. The latest crisis triggered worries about the supply chain woes.
More Gains Ahead?
Currently, WEAT has a Zacks ETF Rank #3 (Hold). Therefore, it is hard to get a handle on its future returns one way or the other. WEAT has a positive weighted alpha of 46.40 (per barchart.com), which gives cues of further rally.