Teucrium Agricultural Fund

TAGS

Market cap $21.3M

China's $17B annual U.S. crop pledge through 2028 could lift agricultural ETFs like TAGS as soybean, beef, and poultry exports set to rebound.

Wheat futures jumped roughly 15% in a single month, crude oil sits in the 98th percentile of its 12-month range, and the Consumer Price Index keeps grinding higher.

Just in time for the start of the growing season, the National Drought Mitigation Center's latest data says that 51% of U.S. states and Puerto Rico are in moderate drought or worse.

Trade truce hopes lift agricultural ETFs like SOYB, CORN, and TAGS, signaling a potential rebound for the U.S. farm sector.

Food prices worldwide continue to rise, hitting an 18-month apex recently. Whether this can translate to higher agricultural commodity prices as a whole remains to be seen.

China continues to wrestle with its economy, adding stimulus measures to stave off the aftereffects of a real estate crisis a few years ago. But as a major corn and soybean consumer, it's keeping prices in limbo.

Per a Finimize report, global food prices climbed higher during the month of September to reach the highest level in the past year and a half according to the United Nations Food and Agricultural Organization (FAO). Sugar prices led the pack, opening up opportunities to invest in rising prices or agricultural commodities in general.

Investors have been cheering China's latest efforts to shore up its economy with recent stimulus measures. In turn, this could provide a much-needed spark for agricultural commodities.

This time of year, according to seasonal trends, is known for the September Effect — a challenging month for equity performance — and the return of market volatility.

China has long been pursuing a state of independence, relying less on the global market for a variety resources. That independence is spilling over into agricultural commodities, which could sway the market.