An agriculture exchange traded fund is down more than 10% this year on a slowing global economy but we have seen bullish call buying in options based on the ETF, which has shown signs of life recently.
PowerShares DB Agriculture (NYSEArca: DBA) has risen the past five sessions and has rallied nearly 4% from the recent lows. The ETF gained nearly 1% on Tuesday.
DBA invests in futures contracts of a number of agricultural commodities according to a rules-based index methodology, and currently has its highest exposure to sugar (12.86%), coffee (12.11%), cocoa (10.95%), live cattle (10.91%) and corn (9.48%).
Other broad based agriculture products to pay attention to in the space include RJA (Elements Rogers International Commodity Index ETN), DIRT (iPath Pure Beta Agriculture) and UAG (E-TRACS CMCI Agriculture Total Return ETN).
Additionally, those looking to make a leveraged long trading play on agriculture may consider DAG (PowerShares DB Agriculture Double Long ETN), and shorts would look to AGA (PowerShares DB Agriculture Double Short ETN).
DBA has languished somewhat year to date, down 11.59%, but we may continue to see buying pressure in the ETF given the recent consistent call buying and a recent strength in many agriculture products.
PowerShares DB Agriculture
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