Teucrium Wheat [WEAT] Stock Forecast

Russia, a top exporter in wheat, is coming off a bumper harvest, which should inject a healthy supply that could put downward pressure on prices. It's welcome news for consumers, but traders may want to watch prices closely as they continue to trend downward.

The Teucrium Wheat ETF provides exposure to wheat through investments in futures contracts. Recent USDA reports suggest a decline in global wheat production, potentially leading to higher wheat prices. The ending stocks/use ratio suggests price is 10-15% cheap. The ongoing Russia/Ukraine war and the blockade of Ukrainian wheat could contribute to a shortage of wheat in the global market.

Soft red winter wheat prices have fallen to their lowest since late 2020, on ample global supplies, despite the lapse of the Black Sea Grain Initiative, which was meant to keep global markets supplied with food in the wake of the Russia-Ukraine war.

Wheat futures touched their lowest intraday prices since late 2020 on Tuesday, then moved up modestly after the U.S. Department of Agriculture left its 2023/2024 U.S. all wheat outlook for supply and use unchanged in its latest World Agricultural Supply and Demand report released Tuesday. The USDA forecast U.S. total wheat supply for the 2023/2024 crop year at 2.444 billion bushels and domestic use at 1.829 billion bushels, which would see ending stocks of 615 million bushels at the end of that crop year.

High food prices aren't relenting and harsh weather conditions should continue to keep them elevated. This could spell opportunities in agricultural commodities.

Wheat prices reached a record high in March 2022 before experiencing a steep correction. Nearby wheat futures have dropped to the lowest price since early 2021. The KCBT-CBOT spread remains elevated, indicating price and supply concerns for wheat in the US.

August was an average-to-downbeat month for investors, mainly due to rising rates.

In addition to re-injecting growth into its economy, China is looking to bolster its food security after harsh weather conditions hit key crops like wheat. The second-largest economy had bright prospects heading into 2023 but still deals with a spate of issues hampering economic growth, such as the after-effects of a real estate development crisis.

If a potential central bank pivot from hiking interest rates isn't enough, then geopolitical factors could add an additional dosage of volatility to wheat prices. In particular, supply disruptions in Ukraine as the conflict with Russia continues could be significant.

India is looking to get seemingly out-of-control wheat prices in order with a potential import tax cut or even by abolishing the tax altogether. The news comes via Reuters.

Teucrium Wheat is a US stock and trading under the symbol WEAT

Teucrium Wheat stock price is $5.81 today.

Yes, Teucrium Wheat is a publicly traded company.