Wednesday, March 16, 2011

How To Make Money On Higher Food Prices.

If you've been to the grocery store in the past month you already know that food prices are on the rise, despite official claims that there is low to no inflation. Food prices rose 3.9% in February - the biggest one month jump since 1974! And that was before the catastrophe in Japan. What the Tsunami and earthquake didn't destroy, the damaged nuclear reactors will probably contaminate.

Then you factor in a harsh winter and ethanol programs turning food into fuel, you can see why prices have started to rise. Fear is also at play. But ask yourself this: What's going to happen when the world emerging market economies really start growing, and demand skyrockets?

Global food prices are at their highest since the U.N. started tracking them in 1990.

So how do you take part in these rising prices to make a little money for yourself, and help offset what you'll be spending yourself? ETF's, of course!

Here are 5, agriculture ETF's that provide broad exposure to various food commodities:

  • PowerShares DB Agriculture Fund (DBA)
  • iPath Dow Jones-UBS Agriculture Subindex Total Return ETN (JJA)
  • E-TRACS UBS Bloomberg CMCI Agriculture ETN (UAG)
  • E-TRACS UBS Bloomberg CMCI Food ETN (FUD)
  • PowerShares DB Agriculture Long (AGF)


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