Tag Archive | POT

Four ETFs Impacted By Increasing Food Prices

The global price of food continues to increase illustrated by the United Nations Food and Agriculture Organization’s monthly food price index rising to 214.7, the sixth consecutive month that the index has risen as supply and demand  imbalances continue to take their toll on food prices. 

Demand for food continues to rise as wealth in developing nation like China, India and Brazil has elevated food consumption as consumers in these nations starve of their traditional eating habits and seek more of a Western-style diet. This elevated demand, combined with supply constraints, has provided positive price support to commodities like corn, wheat, coffee and cotton and cooking oils. Read More…

4 ETFs To Play Ethanol

As governments continue to place an emphasis on renewable energy, many suggest that the future prospects for corn and sugar cane-based ethanol is promising giving support to the Teucrium CORN (CORN), PowerShares Global Agriculture (PAGG), Market Vectors Agribusiness (MOO), and ELEMENTS MLCX Biofuels ETN (FUE).

In Brazil, the main source of fuel in automobiles is already ethanol as most of the nation’s vehicles used for transportation can either run solely on ethanol or utilize a flex-fuel system which uses a mix of gasoline and ethanol.  The success of Brazil’s use of ethanol has many other nations looking at it as a viable power source.  Read More…

Four ETFs To Play Corn’s Shine

As supply and demand imbalances continue to take their toll on corn and other agricultural products pushing prices of these commodities higher, the path to prosperity could potentially be paved for the the Teucrium Corn (CORN), the PowerShares DB Agriculture Fund (DBA), the PowerShares Global Agriculture (PAGG) and the Market Vectors Agribusiness (MOO).

Recently, the US Department of Agriculture released a report illustrating that corn yields are lower than expected resulting in downward revisions to future crop estimates, pushing prices of the sough after commodity north of $5 per barrel.   In fact, the USDA projects that in 2011, supplies as a percentage of usage would be at their lowest level in 15 years.  Furthermore, grains have already been hit by a supply shock earlier this year by the severe drought seen in Russia. Read More…

A New ETF To Play Global Demand Of Natural Resources

As the demand for natural resources has jumped and is expected to continue to do so due to increased wealth in developing nations and a growing global population, State Street recently launched the SPDR S&P Global Natural Resources ETF (GNR) to enable investors to gain access to the sector.

The new ETF will track the S&P Global Natural Resources Index, which is an index comprised of 90 of the largest publicly traded companies, based on market capitalization, in global natural resources and commodities businesses that meet certain investibility requirements .    Companies that are included in global natural resources include those which are engaged in agriculture, integrated oil and gas, oil and gas drilling, oil and gas exploration and exploration, oil and gas refining, coal and consumable fuels, diversified metals and mining, steel, aluminum, gold and other precious metals.  Read More…

4 Commodity ETFs Destined To Prosper

By Kevin Grewal

As economies around the world continue to grow and develop, commodities are likely to remain attractive and for good reason.

Emerging markets are anticipated to grow at exponential rates in the coming year.  China is expected to grow at a rate greater than 8%, India is expected to grow close to 7% and other nations in Africa and Latin America are expected to show some signs of prosperity as well.  To add to this growth, developed nations like the United States are expected to grow which will further bolster upward pressure on commodity prices.

In fact, supply and demand forces have already been taken putting pressure on commodity prices evident through the recent uptick seen in the Batic Dry Index (BDI).  The BDI is an efficient indicator of future economic growth and production and measures the price of shipping dry bulk.   As international demand of commodities increases, the price to ship dry bulk generally increases as well. Read More…

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