When In Drought, Agriculture ETFs Look Good | Page 2 of 2 | ETF Trends

According to Business Intelligence Middle East, Jim Rogers is also bullish on the price of commodities within the next decade. “We’re going to have much, much higher prices over the next few years,” said Rogers. [Agriculture ETFs: Withering Crops, Growing Prices.]

Russia, the world’s third-largest grain producer, is expected to produce only 11 million to 19.5 million ton of crop this year, down from 21.4 million last year, because of drought. Ukraine and Kazakhstan have also been hit with drought while Canada has had a low harvest. The effect has been a spike in global wheat prices to two-year highs.

“A catastrophe is looming,” Rogers said, adding “the world is going to have a period when we cannot get food at any price in some parts of the world.”

For more stories on agriculture, visit our agriculture category.

According to our ETF Analyzer, there are 64 commodity-focused ETFs, including these:

  • PowerShares DB Agriculture (NYSEArca: DBA): Wheat is 12.6%. Corn is 11.8%.
  • iShares S&P GSCI Commodity-Indexed Trust (NYSEArca: GSG): Agriculture accounts for 16% of the fund.
  • PowerShares DB Commodity Index Tracking (NYSEArca: DBC): Wheat is 5.6%. Corn is 5.7%.
  • Teucrium Corn Fund (NYSEArca: CORN): Tracks a basket of corn futures.
  • PowerShares DB Agriculture Long ETN (NYSEArca: AGF): Tracks an index of corn, wheat, soybean and sugar futures.
  • iPath DJ AIG Grains Total Return Sub-Index ETN (NYSEArca: JJG): Tracks a basket of corn, wheat and soybean futures.
  • ELEMENTS MLCX Grains Index Total Return ETN (NYSEArca: GRU): Tracks futures contracts on soybeans, soy meal, wheat and corn.

Sumin Kim contributed to this article.