Moreover, Lowell comments on the disproportionate demand to supply of basic commodity goods. Bloomberg recently reported that of the 18 states that produce corn, only 31% of crops were rated good or excellent this week, or down from 44% last week and 66% for the same period last year.
Invesco PowerShares Agriculture ETF (NYSEArca: DBA) provides a broad exposure to a basket of commodities, including cattle, cocoa, coffee, corn, cotton, hogs, soybeans, and wheat. As the drought is prolonged, the world may expect to see higher food prices. [How High Can Corn ETF Rally on Drought?]
For more information on sector funds, visit our sector ETFs category.
Max Chen contributed to this article.