Crop and trade forecasts issued by the U.S. Agriculture Department look promising, which has led many to expect a slow and steady recovery in the agricultural sector, reports Angie Pointer for The Wall Street Journal.
- The USDA has projected that farm income will rise nearly 12% to $63 billion in 2010.
- Food inflation is below 2007-2008 levels, but that’s expected to end this year as prices for meat, milk and other commodities see price increases.
- It expects a 9% increase in U.S. beef exports and a 9% rise in pork exports.
- Land planted to cotton is estimated to surge 15%, with U.S. cotton exports expected to increase by 5%, and global cotton consumption could expand by 2.6% this year, according to the USDA.
- The livestock sector could be a driver for economic and jobs growth if the farm economy benefits from the broader economic recovery.
There are a variety of ETFs and exchange traded notes (ETNs) that can get you exposure to agriculture, whether you want to go broad with a fund that holds a host of commodities or narrow with a cotton fund. Note that ETNs are debt instruments backed by the credit of the issuer.
For more information on agriculture, visit our agriculture category.
- PowerShares DB Agriculture (NYSEArca: DBA)
- UBS E-TRACS CMCI Food TR ETN (NYSEArca: FUD)
- UBS E-TRACS CMCI Agriculture TR ETN (NYSEArca: UAG)
- UBS E-TRACS CMCI Livestock TR ETN (NYSEArca: UBC)
- ELEMENTS Rogers Intl Commodity Agri ETN (NYSEArca: RJA)
- iPath DJ-UBS Agriculture TR Sub-Idx ETN (NYSEArca: JJA)
- iPath DJ-UBS Cotton (NYSEArca: BAL)
- iShares S&P GSCI Commodity-Indexed Trust (NYSEArca: GSG)
Max Chen contributed to this article.