WEAT Failure

The WEAT ETF has taken a sharp turn lower over the last two days as wheat futures continue to sell off of on long liquidation. It's important to note that the WEAT ETF is comprised of different wheat futures contracts, which may not be a 1:1 correlation with the front month contract. This was especially noticeable on the initial rally in February, where front month futures continued to trade limit up, while deferred contracts were trading lower, acting as a drag on the WEAT etf.