While commodity prices have taken a dip during the summer rally in equities, they’re back on the move higher again, giving consumers no reprieve from rising prices. A Banks report noted that prices could stay elevated for some time.
It’s not just inflation that’s a key catalyst behind rising commodity prices. According to the report, a confluence of other factors is behind the rise and will continue to do so for the next couple of years.
“A World Bank report on the near-term future of the commodities sector reveals that the altering global patterns of trade, production, and consumption will keep commodity prices at historically high levels through the end of 2024,” a Yahoo! Finance report noted.
Central banks around the globe, such as the U.S. Federal Reserve, have been increasing rates in order to keep down inflation. This, however, is causing fears that economic growth could be stifled if rates go too high, which is something the World Bank is advising against.
“Indermit Gill, the Vice President for Equitable Growth, Finance, and Institutions at the World Bank, has said that the soaring commodity prices have started to raise the spectre of stagflation,” the article added. “Gill urged policymakers to take every opportunity to increase economic growth at home and avoid actions that will bring harm to the global economy.”
A Broad Option for Agricultural Exposure
Whether it’s for a continued inflation hedge or to simply diversify a portfolio with more alternative assets as commodity prices push higher, a broad-based exchange traded fund (ETFs) from Teucrium is worth considering. When it comes to commodities exposure, most investors may think of oil, but agricultural exposure can also provide more commodities diversification.
For investors looking for agriculture exposure who don’t know where to start, this is where Teucrium can fill a void, offering investors an easy solution. Getting exposure to commodities doesn’t mean investors have to hold various positions.
Investors can have it all in the convenience of one ETF: the Teucrium Agricultural Fund (TAGS). The fund combines exposure to corn, wheat, soybeans, and sugar through other Teucrium ETFs that focus specifically on these commodities, essentially offering investors a fund of funds.
Funds featured in TILL:
- The Teucrium Corn Fund (CORN)
- The Teucrium Wheat Fund (WEAT)
- The Teucrium Soybean Fund (SOYB)
- The Teucrium Sugar Fund (CANE)
For more news, information, and strategy, visit the Commodities Channel.