When it comes to the weather, crops just can’t seem to win, but exchange traded funds (ETFs) do.
If you’re hungry, the flooding in the Midwest is probably just making a bad situation worse. But if you’re holding an ETF that tracks futures, such as the PowerShares DB Agriculture (DBA), you’re loving the continued hot streak. Year-to-date, the fund is up 23.2%.
Corn futures have hit yet another record, rising 3% after flooding wreaked havoc across the Midwest, Miyoung Kim for Reuters reports. Much of the world’s food is grown there, and now is not a particularly good time for torrential rains and flooding, as we’re already in the midst of a global food crisis.
The U.S. Department of Agriculture has already chopped 5 bushels per acre of this year’s corn production.
We suggest you start thinking about alternative side dishes when you’re grilling out this summer.