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Soybean ETF (SOYB) Hits a New 52-Week High

Sanghamitra Saha

For investors looking for momentum, Teucrium Soybean ETF SOYB is probably on radar now. The fund recently hit a new 52-week high. Shares of SOYB are up approximately 11% from its 52-week low of $17.27/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

SOYB in Focus

The underlying index of the fund looks to reflect the daily changes of a weighted average of the closing prices for three futures contracts for soybeans that are traded on the CBOT. It charges 263 basis points in fees per year (see all agricultural ETFs here).

Why the Move?

Grains have been in the news lately for weather issues. Soybean prices rose on concerns of inclement weather.

More Gains Ahead?

Currently, SOYB has a Zacks ETF Rank #5 (Strong Sell) with a High risk outlook. The fund has a negative weighted alpha of 2.10. In fact, apart from weather issues which appear short-term in nature, there is hardly anything in favor of the grain. This is especially true given the stronger greenback on strengthening Fed tightening bets. So, there is little promise for soybean ETF.  

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TEUCRM-SOYBEAN (SOYB): ETF Research Reports
 
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