Why Grains Investors Should Look At Agribusiness ETFs

August 07, 2012

 

Grains-based exchange-traded products rocketed this summer, particularly the Teucrium Corn ETF (NYSEArca: CORN) and the Teucrium Wheat ETF (NYSEArca: WEAT), but as the rally starts to reach its top end, investors should consider looking into equities-linked agriculture ETFs, according to an article on Seeking Alpha.

Unless the drought worsens, farmers and ranchers will be looking to revive their lands and crops, which should provide a boost to ETFs that serve up exposure to companies that sell supplies like fertilizer, contributor Tom Lydon writes.

Investors’ best bet on playing companies like Deere and Monsanto are agribusiness funds like the Market Vectors Agribusiness ETF (NYSEArca: MOO) and the IndexIQ Agribusiness Small-Cap ETF (NYSEArca: CROP), he said.

For the full story, go to SeekingAlpha.com.

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