The VanEck Agribusiness ETF (MOO) is experiencing upward momentum, driven by several factors impacting the agricultural sector. A significant development is the Indian government's approval of a price hike for milling copra and ball copra, which could boost revenues for producers and positively influence agribusiness stocks. Additionally, the demand for nano urea in India is projected to be substantial for the 2024-25 rabi season, with Uttar Pradesh, Maharashtra, and Punjab leading the demand. This increased demand for agricultural inputs may be contributing to the positive sentiment in the agribusiness sector.
Soybean futures have also shown a rebound, reaching $9.6 per bushel, supported by technical buying and competitive pressures from other exporting regions. Despite the challenges posed by a record Brazilian harvest and weak Chinese demand, the recent technical buying has provided some support to soybean prices. Furthermore, the U.S. dollar's strength, following the Federal Reserve's slower rate-cut outlook, has made U.S. crops less competitive globally, adding complexity to the market dynamics. These factors collectively influence the agribusiness landscape, contributing to 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 6:01 AM ET.