Thanksgiving Dinner More Expensive This Year as Food ETFs Rise | ETF Trends

The Thanksgiving feast usually adds a few more pounds to the scale but this year it will also leave your wallet a bit lighter than usual.

The cost of your Thanksgiving meal will rise this year following this summer’s historic drought, which has pushed agriculture and food prices higher as well as ETFs tracking these sectors.

“The average price of a classic Thanksgiving meal for 10 people last year cost $49.20, up 13% from the year before. But this year, everything from candy corn, butter and cream, to apple pie will be affected. Overall consumers should expect to spend around 15% to 20% more on their turkey and trimmings, or about $10 more than they spent last year,” Sarah Lybrand wrote for Yahoo Finance.

The drought conditions in the Mid-West have cut  typical yields by 10%, the first time farmers have failed to meet demand in 38 years. Price hikes are evident in corn, wheat and soy which will also affect the cost of packaged food. [ETFs to Hedge Rising Food Prices]

Among the most popular inflation hedge investments are agricultural commodities, as food prices are among the first to feel the effects of inflation. As such, a number of big name investors, such as Jim Rogers, have been recommending ag as the place to be for the coming years, reports Jared Cummans for Commodity HQ. [ETF Chart of the Day: Agriculture]

Investors can be thankful for funds such as the PowerShares DB Agriculture ETF (NYSEArca: DBA) which holds a basket of 10 commodities including soybeans, cocoa, cattle, coffee and wheat. The Market Vectors Agribusiness ETF (NYSEArca: MOO) is another option that also tracks the production side of the business. Companies that focus on fertilizer, equipment, seeds and harvesting machinery are all included within the index. [Four Factors to Consider When Investing in Commodity ETFs]