Last week, agriculture and other commodities experienced a selloff and exchange traded funds (ETFs) took the hit with them.
Today, the bargain hunters were alive and well, looking for wheat, corn and soybeans at bargain basement prices, reports Stevenson Jacobs for the Associated Press. All the activity sent agriculture ETFs up big: PowerShares DB Agriculture (DBA) was up 4% for the day, while Market Vectors Global Agribusiness (MOO) was up 4.4%.
The selloff last week was an anomaly in a year in which agriculture futures have climbed to new heights, thanks to poor harvests, dwindling stockpiles and growing demand in emerging markets to feed people and livestock. The flooding throughout the Midwest this weekend also contributed to the spike in prices because growing season is just about to begin.
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.