Some commodity ETFs are off their highs into the double digits. The PowerShares DB Agriculture (DBA) has dropped off by 21.3%, although it’s up 1.4% year-to-date. The fund holds futures in soybeans, wheat, corn and sugar.
Just because commodities are falling here doesn’t mean that it’s the same everywhere, though. In many developing countries, inhabitants are looking for ways to boost their own production and make some money.
Honduras is one country that has taken matters into its own hands and has become a cross-section view of the global food situation, according to Morning Edition on NPR. On the one hand, there are fields of lush and green genetically engineered corn. On the other are low-income families that joke (we hope) that they’ll have to eat one another if they become too hungry.
After farmers endured years of neglect by the government, the country is now trying to reverse the food shortage and feed its people by putting more money into food production.
Agriculture ETFs that could be affected:
- iPath DJ AIG Agriculture Total Return Sub-Index (JJA), down 4.1% year-to-date
- DB Agriculture Double Long (DAG), down 31.6% since April 15 launch
- DB Agriculture Double Short (AGA), up 24% since April 15 launch
- E-TRACS UBS Bloomberg CMCI Food (FUD), down 2.8% since April 4 launch
- ELEMENTS MCLX Grains Index (GRU), down 15.1% since Feb. 15 launch