Tuesday, June 23, 2015
Buy DJ-UBS Grains Total Return Sub-Index ETN (JJG), or the MLCX Grains Index TR ETN (GRU) & Go Long Agriculture
You could trade the more active, nearby grain futures contracts and roll them upon expiration. But, if you aren’t willing to do that, there are always agriculture and grain indices ETNs that are more user friendly. Check out the DJ-UBS Grains Total Return Sub-Index ETN (JJG), or the MLCX Grains Index TR ETN (GRU), both of which track the performance of agriculture futures.
The good news is that agriculture futures prices are currently quite low, so it’s a good time to get in.
But don’t wait for Mother Nature to do her thing, because she can be fickle.
Look out for future GIEWS reports, which monitor the condition of major food crops across the globe to assess production prospects.
It would also be smart to check out the newly developed FAO-Agricultural Stress Index System, which detects agricultural areas with a high likelihood of water stress (drought) at the global level.
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