ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Commodities Channel
  2. Wheat Prices May Stay Elevated Through Next Year
Commodities Channel
Share

Wheat Prices May Stay Elevated Through Next Year

Ben HernandezFeb 01, 2023
2023-02-01

Investors bullish on rising wheat prices could be smiling all the way into 2024 with only one month down in 2023. While there are various ways to get wheat exposure, one convenient way is to use exchange traded funds (ETFs).

“Wheat prices continue their volatile upward trend and hit record levels this marketing year and are expected to remain elevated into next year,” an Investing.com article noted. “They will surely remain in primary focus of agricultural commodity traders going forward.”

The commodity has been steadily rising over the past three years, but spiked in 2022 during Russia’s invasion of Ukraine. Russia’s occupation of the Black Sea stifled Ukraine’s exports, including wheat and other commodities, pushing prices higher as supply was reduced and demand stayed high.

Other countries have been turning to other wheat producers amid the invasion, including the United States. As such, wheat traders are paying attention to U.S. production numbers though they have been declining as global competition rises.

“Although the United States typically produces only about 6-7% of the world’s wheat, it is a major wheat exporter,” the article added. “As competition in global wheat markets has grown, farmers’ returns for planting wheat in the U.S. have declined relative to other crops, which has additionally encouraged some farmers to reduce wheat plantings. Changes in farm legislation in the mid-1990s that allowed farmers more flexible crop choices also reduced wheat acreage.”

Get Exposure to Wheat in a Single ETF

Get Exposure to Wheat in a Single ETF

Economic policy, particularly in the current times where inflation is high, will continue to remain a wild card in any market, regardless of the asset class. There’s no telling what the U.S. Federal Reserve will do with respect to interest rate policy, and agricultural commodities can offer that hedge should prices continue to keep on rising.

Furthermore, agricultural commodities like wheat offer investors alternative exposure to traditional assets in a portfolio like stocks and bonds. They can provide exposure to an asset that’s largely uncorrelated to stocks or bonds, offering portfolio diversification.

Additionally, rising wheat prices should benefit ETFs that focus on the commodity, such as the Teucrium Wheat Fund (WEAT C). As mentioned, the fund can be used as an ideal inflation hedge as prices continue to rise alongside rising commodity prices, or investors can use the fund to add commodities to their portfolios for diversification.

For more news, information, and analysis, visit the Commodities Channel.


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X