Four ETFs To Cash In On Rising Food Prices

Supply shocks over the past two years in wheat and corn continue to take their toll on food prices, which will likely provide positive price support to the iPath Dow Jones-UBS Agriculture Subindex Total Return ETN (JJA ), iPath Dow Jones-UBS Grains Subindex Total Return ETN (JJG),  (DBA), UBS E-TRACS CMCI Food T ETN (FUD) and Market Vectors Agribusiness ETF (MOO).

On the production side, both wheat and corn have taken a major hit over the past couple of years as natural disasters and crop disease have plagued some of the major producing parts of the world.  Russia, for example, witnessed a severe drought over the past few years which has curtailed production of wheat, forcing the Kremlin to halt exporting the commodity to ensure that domestic supply can meet domestic demand.  Similarly, the current drought in Texas is starting to take its toll on corn production keeping prices of corn elevated.  In fact, the Agriculture Department expects a national average corn yield in the US of 153 bushels per acre, nearly 4% lower than its earlier forecasts.  Read more of this post


Four ETFs Likely To Be Impacted By US Corn Production

According to the latest data reported by the U.S. Department of Agriculture, U.S. farmers are expected to increase corn production, which could potentially influence the Teucrium Corn ETF (CORN), PowerShares DB Agriculture Fund (DBA), Market Vectors Agribusiness (MOO) and PowerShares Global Agriculture (PAGG).

Major imbalances in supply and demand have pushed agriculturally-based commodity prices such as corn, wheat and cattle through the roof.  Inclimate weather around the world has taken its toll on production, while increasing purchasing power in developing nations, coupled with growing populations around the world, has pushed up demand.  In fact, the USDA reported earlier this year that corn reserves were at a 15 year low.  Corn is a vital commodity due its uses in packaged foods and its importance in livestock production. Corn is often used by farmers and ranchers to fatten up their herds of cattle and chicken to produce more meat, eggs and milk.  Read more of this post

Four ETFs To Play Ethanol

As governments continue to place an emphasis on renewable energy, many suggest that the future prospects for corn and sugar cane-based ethanol is promising giving support to the Teucrium CORN (CORN), PowerShares Global Agriculture (PAGG), Market Vectors Agribusiness (MOO), and ELEMENTS MLCX Biofuels ETN (FUE).

In Brazil, the main source of fuel in automobiles is already ethanol as most of the nation’s vehicles used for transportation can either run solely on ethanol or utilize a flex-fuel system which uses a mix of gasoline and ethanol.  The success of Brazil’s use of ethanol has many other nations looking at it as a viable power source.  Read more of this post

Four ETFs To Play Corn’s Shine

As supply and demand imbalances continue to take their toll on corn and other agricultural products pushing prices of these commodities higher, the path to prosperity could potentially be paved for the the Teucrium Corn (CORN), the PowerShares DB Agriculture Fund (DBA), the PowerShares Global Agriculture (PAGG) and the Market Vectors Agribusiness (MOO).

Recently, the US Department of Agriculture released a report illustrating that corn yields are lower than expected resulting in downward revisions to future crop estimates, pushing prices of the sough after commodity north of $5 per barrel.   In fact, the USDA projects that in 2011, supplies as a percentage of usage would be at their lowest level in 15 years.  Furthermore, grains have already been hit by a supply shock earlier this year by the severe drought seen in Russia. Read more of this post