Chicago wheat futures (March 22) were trading around $8.48 per bushel on Wednesday, its highest level since late November and closing in on its 2012 levels on supply worries amid worsening friction between global crop key producers Russia and Ukraine. With the two countries accounting account for nearly a third of wheat and barley exports, and about a fifth of the corn trade, any conflict in the region would take out crucial supplies from an already tight market. Additionally, low inventories in the US and Canada, the second and third-largest exporters globally, added to upside risks.
Investing in America-domiciled Wheat ETFs
Investors hoping to catch the Wheat wave can explore the Teucrium Wheat Fund (WEAT). The fund provides exposure to the price of wheat futures and is the first pure play wheat ETP to hit the US market. WEAT has an expense ratio of 1.91% and trades primarily on NYSE Arca. This month WEAT rose by +11.75% as events unfolded on the Russian Border.
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