Food prices and agriculture exchange traded funds (ETFs) both may reflect the news contained in the USDA’s harvest projections.

The U.S. Department of Agriculture cut its harvest projections for corn, soybeans and wheat, adding fuel to the commodity-rally fire. Meanwhile, further concerns about a food shortage are becoming a reality. Scott Kilman and Liam Pleven for The Wall Street Journal report that the agency’s decision to cut its month-old corn projection by 3.8% was startling to many. [Commodity ETFs Are Leading The Charge.]

Historically, though, the USDA’s forecast for corn crops is still the third-largest ever. [Farming Your Ag ETF Options.]

Economists expect farmers to respond to high grain prices by planting millions more acres of corn and wheat, which should benefit sellers of seed and chemicals to farmers such as Monsanto Co. and DuPont Co. The larger threat comes from using other farmland for those commodities in a shortage in order to make up. This could in turn create another shortage.

There are more than 100 ways to play commodity ETFs in the ETF Analyzer. A few of the ways to get exposure to this rally include:

  • PowerShares DB Agriculture (NYSEArca: DBA): 11.4% of DBA is corn futures
  • Teucrium Corn (NYSEArca: CORN): Holds corn futures contracts
  • Market Vectors Agribusiness (MOO): Monsanto is 8.4%

Tisha Guerrero contributed to this article.

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.