3 Stocks/ETFs to Watch for the Heatwave

As temperatures raced higher and stayed well above 100 degrees Fahrenheit in some cities for weeks, many Americans are finally set to see some relief from the heat. However, cities that avoided the triple digit heatwave in the western U.S. are set to see temperatures spike. Here are some stocks or ETFs to watch for the continuation of the heatwave.

1. Teucrium Corn Fund CORN: The Teucrium Corn Fund is an ETF that invests in corn futures, the front, second, and third month futures specifically. As the heatwave ravaged Midwestern states known for agricultural production, corn prices have risen. After the close today, the USDA is set to release its weekly Crop Progress Report. If the USDA reports that more crop was damaged due to the heatwave, corn prices could rise (as supply of good quality corn is expected to be lower).

2. NV Energy Inc. NVE: Nevada is one of the states expected to see a surge in temperatures over the next few days. Temperatures in Las Vegas are expected to remain above 110 degrees for the next three days, increasing power demands for air conditioning and other appliances. As temperatures climb, the stock price might, and investors may consider adding NV Energy to their portfolios as a bet on higher temperatures in Nevada.

3. U.S. Natural Gas Fund UNG: Natural gas prices have had a strong run over the last few months, with benchmark Henry Hub Natural Gas futures rising from multi-year lows earlier this year. In April, prices traded below $2.00 per bcf and have since traded higher to $2.94 per bcf. Should the heatwave continue, demand for natural gas should increase because it is used for powering homes and appliances. Thus, a continued heat will increase demand for air conditioning, fans, and other summer-specific appliances, increasing demand for power and by default nat gas.