Wheat prices remain in a bearish trend due to ample global supplies, higher U.S. stocks, and weak consumer hedging demand. The May WASDE report projects increased U.S. and global wheat inventories, pressuring prices and lowering the USDA's price forecast. Weather and geopolitical risks, especially in Russia and Ukraine, are key wildcards that could trigger price volatility or limit further downside.
Today, Teucrium launched the Relative Strength Managed Volatility Strategy ETF (RSMV). RSMV is an actively managed fund that looks to generate long-term capital appreciation for its investors.
India could see a warmer winter ahead, potentially putting wheat yields in jeopardy. The prospect of lower production could give prices a much-needed jump start to an uptrend.
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The fund is designed to meet its investment objective by focusing on Benchmark Component Futures Contracts. This strategy involves a dedicated approach to asset management, wherein the fund is projected to allocate all its assets into targeted futures contracts and cash or cash equivalents under normal market conditions. This investment approach underscores a precise methodology, aiming at aligning with the fund’s investment goals through calculated exposure to futures contracts.
The fund offers a specialized investment vehicle structured around two core components: