PowerShares DB Agriculture Fund (NYSE: DBA) — This exchange-traded fund (ETF) seeks to track the price and performance of the Deutsche Bank Liquid Commodity Index. Food shortages and higher prices for commodities like wheat, corn, soybeans and sugar are being forecast by economists worldwide. And the recent move by China to raise interest rates is evidence that the country’s central planners are concerned about possible inflation in food prices that could cripple their economy.
As for agriculture ETF DBA, note the impressive pickup in volume on the chart, as well as the golden cross and the recent breakout from a double-top following a bounce from its 50-day moving average.
Traders should target DBA for a quick trade to $36 since the ETF broke down from that level in August 2008, but long-term investors may want to hold this ETF as a cornerstone investment with a price objective north of $50.
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