Soybean ETF (SOYB) Hits New 52-Week High

·2 min read

For investors seeking momentum, Teucrium Soybean Fund SOYB is probably on radar. The fund just hit a 52-week high and is up 80% from its 52-week low price of $13.44 per share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

SOYB in Focus

This product provides investors an easy way to gain exposure to the price of soybean futures in a brokerage account. It uses three futures contracts for soybeans, all of which are traded on the CBOT Futures Exchange. The three contracts include the second-to-expire contract weighted 35%, the third-to-expire contract weighted 30%, and 35% weighted contract expiring in the December following the expiration month of the third-to-expire contract. It charges a fee of 2.50% per year (see: all the Agricultural ETFs here).

Why the Move?

Soybean as a commodity has been an area to watch lately given its soaring prices. The soybean futures topped $16 per bushel for the first time since 2012 on supply crunch concerns. Surging demand in China and bad weather in key global-growing areas have sparked fears of grain shortages.

More Gains Ahead?

Currently, SOYB has a Zacks ETF Rank #5 (Strong Sell) with a High risk outlook, suggesting that the fund might not continue its outperformance in the months ahead. However, a high weighted alpha of 83.22% and a low 20-day volatility of 14.92% shows that there is definitely still some promise for risk-aggressive investors, who want to ride on this surging ETF.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on click here.