WEAT is set to reach new highs as worldwide grain shortages increase the cost of food. In addition to the Russia-Ukraine region supplying 30% of the world’s grain, China has had to prematurely cull its own crops (another 20% of the world’s grain) which have suffered from a harsh winter and China’s recent lockdown. Moreover, fertilizer shortages worldwide will also negatively impact crop yield, not to mention WEAT’s base case as an inflationary hedge. We expect WEAT to be a top performer of 2022.
CEIX has one of the strongest charts of any asset at the moment, and will only continue to climb as relations with Russia deteriorate. The EU has presently placed an embargo on Russian coal beginning in August, and the US embargo on Russian coal has already begun. CEIX is also based in Pennsylvania, and subsequently immune to having any of its resources or operations harmed by the present conflict. Expect much higher prices throughout this year.
WEAT and CEIX are two great names to add amidst the ongoing market turmoil, as outright geopolitical conditions are set to ensure their success regardless of overall market volatility.