While some commodity exchange traded funds (ETFs) are taking a breather from their phenomenal gains, others are continuing to climb as though nothing can stop them.
While shoppers might not be liking the rising prices, farmers are sure enjoying them. The rising cost of corn, soybeans and other crops is sharply increasing the value of land, which is rising at the fastest rates in nearly three years, says Money Morning.
Leading for the second straight day is iPath DJ AIG Cotton (NYSEArca: BAL), which gained 6.3% yesterday, is showing no signs of slowing. Halfway through the day, it’s up more than 6.6%.
The drive today is in part backed by the fundamentals that contributed to the gains in the first place (flooding, strong demand from China). But it’s further assisted by mills, which are buying futures to ensure there are supplies when the next harvest comes through, says the Guardian.
Silver, too, is being supported by the typical fundamentals of increasing industrial demand, particularly when it comes to emerging markets like China. But today it’s continuing to gain on reports that supplies are the tightest they’ve been in four years, says Reuters.
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.