Just as winter was full of extreme weather – blinding blizzards and torrential downpours – much of the nation could be in for an equally soggy spring. That has farmers concerned, but it might be an opportunity for agriculture-related exchange traded funds (ETFs).
Rising production costs and the stability of commodity prices are on many producers minds. While herbicide programs are going swimmingly and weeds are not a threat, the rising cost of producing agriculture commodities and the prospect of too much rain weigh heavy, reports Elton Robinson for SouthEast Farm Press. [ETFs to Play An Agriculture Recovery.]
Major spring flooding may be in the offing for the Midwestern states. Sandy Shore for Associated Press reports that grain prices rose Wednesday amid speculation that wet, cooler weather could slow spring planting across much of the country. A weaker dollar, a rising stock market and a spike in demand for commodities are a potential formula for a rise in commodity and agriculture prices across the board. [ETFs to Fight the Battle of the Bulge.]
Corn prices in particular could spike; acreage planted this year is expected to be the highest since World War II, but even that may not derail rising corn prices. Corn prices may rise 29% to $4.75 a bushel in a year, according to Goldman Sachs, reports The ETF Professor for Benzinga.
For more stories about agriculture, visit our agriculture category.
- PowerShares DB Agriculture (NYSEArca: DBA): Holds wheat, corn, soybeans and sugar futures, among others
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.