ETF Database » GRU

Grain ETFs Surge As Russia Halts Wheat Exports

Eric Dutram — Thu, 05 Aug 2010 19:46:24 +0000

With equity markets surging as of late, commodities have been left on the back burner, an after-thought for most investors. However, recent events in both the sugar and wheat markets look to once again put commodity ETPs at the forefront of investors’ minds. While sugar is surging due to seasonality issues, wheat has been heavily impacted by weather issues in one of the world’s most important wheat-producing regions. One of the worst drought’s in Russia’s history has devastated the nation’s wheat output, forcing the government to take drastic measures in order to protect its food security and avoid becoming a net-importer of the staple crop. Earlier today, Russian Prime Minister Vladimir Putin told government officials that a temporary ban was needed on grain exports, with a spokesman later saying that it would come into force from August 15 and would apply to contracts that had been already signed [see the [...]

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Time To Harvest The Grains ETFs?

Cathy Carlson — Tue, 20 Jul 2010 19:08:02 +0000

For the investors who had been preaching on the need to brace for a surge in inflation in the wake of massive capital injections, credibility continues to slip away. Recent CPI readings have been tame, to say the least; deflation is a more immediate concern even in an environment where inflation rates are expected to remain near record lows for the foreseeable future. Some of these “inflation bugs” thought recently that they had seen the tip of the iceberg, as food prices began to skyrocket across the U.S. But a closer look at the factors driving grains prices reveals that the rally in certain agricultural commodities is not the long-awaited punishment for unprecedented capital injections in Washington, but rather the result of unexpected developments overseas. Wheat prices have jumped in the U.S. as a drought throughout Europe and Russia, as well other unforeseen ills, has pushed the commodity to a [...]

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Time To Short Grains ETFs?

Michael Johnston — Mon, 21 Jun 2010 18:40:17 +0000

Before the onset of the recent global recession, a decade-long commodity boom had delivered handsome returns to investors who established exposure to natural resources, as the prices of everything from apples to zinc climbed steadily on mounting scarcity concerns. During this prolonged run-up grains prices skyrocketed as food crises materialized, with a sharp economic pullback arriving just in time to cool demand and dissolve severe global shortages. With signs emerging that the global recovery continues to progress and lingering concerns about a surge in inflation, exposure to food commodities may seem like a smart bet (see Beyond TIP: Ten ETFs To Protect Against Inflation). But some are concerned that huge supply surpluses will keep prices in check for the foreseeable future, creating a dire situation for small farmers and increasing the costs of subsidies for an already cash-strapped government. “Some traders and economists are speculating that if the U.S. and [...]

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Ready Or Not, Here Comes A Corn ETF

Michael Johnston — Tue, 30 Mar 2010 10:52:49 +0000

Recent years have seen the launch of hundreds of new exchange-traded products, many of which offer increasingly granular exposure to various asset classes. The latest innovation comes in the commodity space, where Vermont-based Teucrium Trading LLC filed with the SEC for an ETF that invests in Chicago Board of Trade Corn Futures. The Teucrium Corn Fund (CORN) would hold a portfolio consisting of three separate corn futures contracts, including: 35% in the second-to-expire CBOT Corn Futures Contract 30% in the third-to-expire CBOT Corn Futures Contract 35% in the Corn Futures Contract expiring in the December following the expiration month of the third-to-expire contract. So CORN would fall somewhere in the middle of the “contango” continuum for futures-based exchange-traded products. The fund would “roll” its holdings less frequently than ETFs like the United States Natural Gas Fund (UNG) that invest only in near-month contracts, but less frequently than UNG’s cousin, the [...]

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Ultimate Guide To Agricultural ETFs: Agriculture ETF Investing 101

Michael Johnston — Thu, 14 Jan 2010 21:00:19 +0000

Following the massive injections into capital markets in recent years, inflation has become a major concern of many investors, and the quest to uncover assets that offer portfolio protection against a potential uptick in the CPI has taken on many forms. While inflation-protected bonds are the instrument of choice for some, others have turned their attention to commodities, hoping that the addition of hard assets to a portfolio will reduce overall volatility and provide a hedge against inflation. Most investors seeking exposure to commodities as protection against inflation focus on gold and oil, two resources that have historically increased in value as inflation rises. But in recent years agricultural commodities have become increasingly popular choices, as increases in population and the scarcity of land create a compelling case for investment. Moreover, because these resources account for a significant portion of most household budgets, investments in agriculture hedge exposure to an [...]

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Ten Worst Performing ETFs Of 2009

Michael Johnston — Tue, 22 Dec 2009 19:06:08 +0000

For most investors, 2009 has been a very good year, with a surge in liquidity leading almost all asset classes to big gains. As many national economies emerged from recession, investors regained their appetite for risk, sending emerging markets funds through the rook (these funds dominated the list of the Top Ten Performing Equity ETFs). But less risky asset classes also jumped in 2009, and the vast majority of exchange-traded products are heading towards the finish line well in the black on the year. But some funds have not been nearly so fortunate. Although this year has been one of the best in recent memory for most investors, several ETFs missed out on the surge and instead posted big losses. Beyond inverse and leveraged ETFs, the ten worst performing ETFs of 2009 include: 10. PowerShares 1-30 Treasury Ladder (PLW) As risk tolerance has returned to the markets this year, many [...]

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This Week In ETFs: December 18th Edition

Eric Dutram — Fri, 18 Dec 2009 19:00:54 +0000

It’s been an interesting week in the world of ETFs: Greek government debt was downgraded and world leaders continued their climate conference in Copenhagen. Here are the ETF Database staff picks of the week’s most important and interesting stories from around the Web: Could the Government Prevent Another Major Collapse? at ETF Guide: In an interesting take on the recent bailouts, Simon Maierhofer discusses the disastrous impact that these programs have had on the overall market. Maierhofer notes that after the first major bailout equity markets plunged 30% and dropped 15% after the second, only recently rebounding to pre-crash levels. He also points out that although the bailout funds were generally given to banks in order to start lending again, cash assets at banks have grown four-fold over the past year and a half. The author concludes that the problems we currently face are too big even for the government [...]

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ETF Plays For A Falling U.S. Dollar

Michael Johnston — Mon, 02 Nov 2009 08:00:44 +0000

As U.S. equity markets have soared in recent months, the dollar has steadily declined against most of its major rivals, recently falling below the key $1.50 level against the euro for the first time since August of last year. This extended fall has investors wondering if the dollar’s decline reflects temporary volatility, or a long-term trend. Despite the negative connotation, a less valuable currency may not be a negative development for the U.S. economy. But it has nevertheless become a concern for many investors who have begun to seek out ways to hedge against a further decline. Not surprisingly, there are a number of ETFs that offer a way to profit from a falling dollar. Today, we take a look at one of these options: exchange-traded commodity products. To get the rest of the series, be sure to sign up for our free ETF newsletter. Root Of The “Problem” Pinpointing [...]

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Three Reasons The Sugar ETF High Is Headed For A Crash

Michael Johnston — Mon, 17 Aug 2009 14:33:46 +0000

Sugar ETFs have continued their “almost vertical trajectory” in recent weeks, soaring higher on news that several major food producers sent a letter to the Secretary of Agriculture exclaiming that the U.S. could “virtually run out of sugar” if import restrictions on the sweetener aren’t lifted. Currently, quotas limit the amount of sugar U.S. companies can import (in accordance with NAFTA, there are no restrictions on imports from Mexico), meaning that U.S.-based firms often pay about twice the rate paid in other parts of the world. Sugar prices has soared this year as a “perfect storm” of conditions has brewed around the globe. India, the world’s second largest producer of sugar cane, has experienced its driest monsoon season in several years, forcing the nation to become a net importer of sugar in 2009. And Brazil, the world’s largest producer, is diverting a huge percentage of its cane crop to the [...]

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ETF Database » GRU

Grain ETFs Surge As Russia Halts Wheat Exports

Related Posts:

Time To Harvest The Grains ETFs?

Related Posts:

Time To Short Grains ETFs?

Related Posts:

Ready Or Not, Here Comes A Corn ETF

Related Posts:

Ultimate Guide To Agricultural ETFs: Agriculture ETF Investing 101

Related Posts:

Ten Worst Performing ETFs Of 2009

Related Posts:

This Week In ETFs: December 18th Edition

Related Posts:

ETF Plays For A Falling U.S. Dollar

Related Posts:

Three Reasons The Sugar ETF High Is Headed For A Crash

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