The production of crops is being affected by a summer that’s been unusually hot. The degree of damage varies between regions, but to some analysts, it remains clear that there will be a shortage of food in the years to come. If such dire predictions ring true, crop based exchange-traded funds (ETFs) are sure to benefit.

According to Jeff Wilson of Bloomberg, corn and soybean futures gained on speculation that the hot Midwest summer this year will not provide enough rainwater for a plentiful harvest. The gain is speculative because the government predicted a record year for crops. [ETFs for the Most Important Meal of the Day.]

T-Storm Weather LLC reported that August has been the second hottest month since 1960 and Commodity Weather Group LLC said, “about 25% of the U.S. soybean-growing area won’t get enough rain for proper plant development over the next two weeks, and that the dryness could harm a third of the Midwest should rain miss sections of Illinois this weekend, as expected.”

Even farmers are preparing for 5% to 10% lower production than what was initially forecast from field samples earlier this year.

On Aug. 12, corn futures for December delivery were up 3% and soybean futures for November delivery were up 1.4%.

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