Agriculture ETNs Fatten Up As The Economy Improves
May 17th, 2010 at 11:00am by Tom Lydon
Meat 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)
- UBS E-TRACS CMCI Livestock TR ETN (NYSEArca: UBC)
- UBS E-TRACS CMCI Food TR ETN (NYSEArca: FUD)
“Max Chen contributed to this article.”
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