A Seasonal Trade In The Fertilizer Sector

June 29, 2012


Traditionally, fertilizer prices rise toward the end of June as grain farmers prepare their crops for summer harvest. The good news is that investors can use ETFs to make plays on the correlation between the two products, according to an article in the Globe and Mail.

Grain prices are in a position to grow as the climate remains ideal in the U.S. Midwest and Canadian prairies, and Chinese and Eastern European grain demands grow amid relatively low inventories, the Globe and Mail said.

Investors can use the iPath DJ-AIG Grains ETN (NYSEArca: JJG) to track the price of wheat, and the Global X Fertilizer/Potash ETF (NYSEArca: SOIL) is a simple way for investors to play the fertilizer market, the article said.

To read the full story, go to theglobeandmail.com.

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