The Teucrium Wheat Fund (NYSEARCA:WEAT) has risen 7.3% since Friday’s close as the Russian military onslaught continues in Ukraine. Concerns about supplies of grain have forced prices for wheat sharply higher.
The advance came as Ukraine rejected the Russian demand to surrender the southeastern city of Mariupol, a sign that fighting could drag on into the foreseeable future. Russia and Ukraine are two of the leading suppliers of the world’s grain and together represent nearly a third of the world’s grain exports.
WEAT has now swelled to +26.8% since Russia invaded Ukraine back on Feb. 24 and at one point peaked at +51.4%. As the war continues, WEAT, one of the market’s top performing funds recently, has had its best overnight advance since Mar. 4, when the fund touched its recent eight-year peak.
WEAT, with its 1.00% expense ratio, is not the only agriculture-based fund experiencing positive action on Monday. Four others are the iPath Bloomberg Grains Subindex Total Return (JJGTF) +4.7%, ELEMENTS Linked to the MLCX Grains Index – Total Return (NYSEARCA:GRU) +4.6%, iPath Series B Bloomberg Agriculture Subindex Total Return ETN (NYSEARCA:JJA) +2.8%, and the Invesco DB Agriculture Fund (NYSEARCA:DBA) +2.1%.
Year-to-date price action: WEAT +44.2%, JJGTF +31.3%, GRU +32.6%, JJA +24.5%, and DBA +12.4%.
The conflict in Ukraine has already led nations to reassess their energy security, but food security is also now making waves.