WEAT — Teucrium Wheat Fund
WEAT provides exposure to CBOT wheat futures using the same multi-contract blend methodology as CORN. Wheat is one of the world's most important food commodities, with prices driven by global crop conditions, geopolitical supply disruptions (Russia and Ukraine are major wheat exporters), and demand from flour milling, bread production, and animal feed. WEAT received extraordinary attention during the 2022 Russia-Ukraine war as wheat prices surged.
Top Holdings
Strategy
- →Use for wheat price exposure in a commodity allocation, particularly during supply disruption events
- →Monitor global wheat production reports (USDA WASDE) and geopolitical developments
- →Note extreme volatility potential — wheat can double or halve based on geopolitical/weather events
- →Keep allocation small given single-commodity concentration and high fees
Best For
- ✓Commodity specialists wanting direct wheat price exposure
- ✓Agricultural commodity allocators seeking diversification beyond corn and soybeans
- ✓Investors expressing a specific thesis on global wheat supply disruptions
- ✓Tactical traders using wheat as a geopolitical food security hedge
Key Risks
- ⚠Single-commodity concentration — fully exposed to wheat price moves
- ⚠Very high expense ratio (1.14%) for single-commodity exposure
- ⚠Geopolitical shocks (wars, export bans) can cause extreme volatility in both directions
- ⚠Contango drag can slowly erode returns in normal market conditions
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Frequently Asked Questions
Why did WEAT surge in 2022?
Russia and Ukraine together produce approximately 25–30% of global wheat exports. When Russia invaded Ukraine in February 2022, fears of massive supply disruption caused wheat futures to surge dramatically. WEAT nearly doubled in price within weeks. This is educational content, not financial advice.
What drives wheat prices?
Wheat prices are driven by global crop production (weather in Russia, Ukraine, US, Australia, Canada), geopolitical events affecting major exporters, flour demand, animal feed needs, and government stockpiling. This is educational content, not financial advice.
What is CBOT soft red winter wheat?
CBOT wheat futures primarily track soft red winter wheat, one of several wheat classes. It is used primarily for flour production in bread, cakes, and pastries. The CME Group's CBOT is the primary exchange for US wheat price discovery. This is educational content, not financial advice.
Is WEAT suitable for long-term holding?
Generally no. Futures-based agricultural ETFs face contango drag in normal market conditions. They are primarily suitable for tactical positioning around specific supply/demand events. This is educational content, not financial advice.
Does WEAT issue K-1 forms?
Teucrium funds typically issue K-1 forms as limited partnerships. This adds tax filing complexity. This is educational content, not financial advice.
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