ETF Trends
ETF Trends

Whole grains are good for you, and agriculture exchange traded funds (ETFs) could be, too.

The planting season is just around the corner. With that is the result of a study showing that people can lose weight by loading up on whole grains, reports Reuters Health. The grains are heart-healthy and help dieters shed excess belly fat. We Americans love finding new ways to battle the bulge, so perhaps a run on whole grain products such as brown rice, barley and oatmeal is around the corner.

The results of the study are perfect timing. The PowerShares DB Agriculture (DBA) is weighted in corn, wheat, soybeans and sugar. Michale Ferrari for Seeking Alpha reports that more wheat is being planted in response to the growth in demand for the product, which is edging out corn and soybeans.

Market Vectors Global Agribusiness ETF (MOO) will feel the effects of this push and pull between the various types of agriculture.

As for the agriculture situation around the world:

  • In South America, heavy rains and cooler temperatures will benefit corn and bean crops. The rest of the month could remain dry in Argentina, which will hurt the soybean crop.
  • In the EU, a cool, dry week shouldn’t have a negative effect on dormant EU oilseeds.
  • India’s outlook is dry, and as the oilseed pods are being set, they could use more moisture.
  • Thanks to heavy snow and freezing rain in China, wheat and oilseed crops are going to be lost in the northern and easter regions. Recent estimates place more than 4 million hectares of land in the "suffered significant damage" category.

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.