Still, DBA could offer some near-term upside if the Federal Reserve holds off on raising interest rates later this month, a move that would likely lead to more dollar weakness. That would be a boon for dollar-denominated commodities. For the moment, the Fed appears openly dividend on raising rates later this month and many traders believe only one rate hike at the most will come to pass this year.
Related: Coffee ETN Pullback Could Spell Opportunity
Commodities have outperformed bonds, currencies and equities this year on speculation over supply disruptions and production cuts that slowly diminished multi-year surpluses, which contributed to the largest price collapse in a generation. Meanwhile, we are also seeing demand improving.
For more news and strategy on the Agriculture market, visit our Agriculture category.
PowerShares DB Agriculture Fund
