The VanEck Agribusiness ETF (MOO) is experiencing upward momentum, driven by a mix of global agricultural developments and domestic policy shifts. Wheat futures have been trading below $5.50 per bushel, influenced by favorable weather conditions in Europe and the U.S., which support winter wheat planting. However, Russia's downward revision of its 2025 wheat crop forecast due to poor crop conditions has introduced supply concerns, potentially boosting wheat prices. Additionally, Saudi Arabia's recent purchase of 804,000 tons of wheat, exceeding its initial target, signals increased demand, which could further support agricultural commodity prices.
In the U.S., Arkansas farmers are navigating a challenging landscape with the potential extension of Farm Bill provisions. The proposed economic relief aims to address ongoing agricultural challenges, including low commodity prices and high input costs. Despite record crop yields, financial strains persist due to declining profit margins. Shipping disruptions on the Mississippi River have also impacted export capabilities, although recent improvements in corn and soybean shipments offer some relief. These factors collectively contribute to a complex environment for agribusiness, influencing the ETF's performance.
The VanEck Agribusiness ETF (MOO) is up 3% in pre-market hours on Monday, December 23, reaching $68.93 as of 6:30 AM ET.