Agriculture ETNs Fatten Up As The Economy Improves

May 17th at 11:00am by Tom Lydon

Agriculture ETFMeat producers had to tighten their belts during lean times, but consumer demand for products has steadily increased as the economy improves. The higher demand, along with higher prices of meats, may prove to fatten up some agriculture exchange traded notes (ETNs).

Poultry producers like Tyson Foods Inc (NYSE: TSN) and Pilgrim’s Pride Corp. (NYSE: PPC) reduced production back in 2008 as feed prices increased and consumer demand declined, writes Meg Marco for The Consumerist.

Tyson Chief Executive Donnie Smith remarks,”we think we’ll do even better the second half of the fiscal year as our operational performance continues to improve. We are very pleased with how our third quarter is going, and the summer grilling season is just getting started.”

MarketWatch reports that prices for Tyson “pork jumped 15%, chicken rose 10.2%, and beef gained 8.4% over the year ago period.”

For more information on agriculture, visit our agriculture category.

  • iPath Dow Jones AIG Livestock TR Sub-Index (NYSEArca: COW)

ETF COW

  • UBS E-TRACS CMCI Livestock TR ETN (NYSEArca: UBC)

ETF UBC

  • UBS E-TRACS CMCI Food TR ETN (NYSEArca: FUD)

ETF FUD

“Max Chen contributed to this article.”

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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