Agriculture ETFs Jump on US Heatwave

Jacob Harper |

An anticipated late-summer heatwave is expected to raise agricultural commodity prices, which had been plummeting on previously expected large harvests.

Commodities have been on a seesaw this summer. Unseasonably cool weather in the South coupled with the expected healthy production out of the Midwest had pushed agriculture commodities down rapidly in early August. However, with worries the upcoming US heat wave will negatively affect production, and news that an already late harvest of wheat from the South will once again be delayed on stagnant rainfall, agricultural commodities have shot back up.

The grain industry usually expects to begin processing the summer wheat by early August.

Corn as well has experienced a highly unusual summer, with exceedingly favorable growing conditions in the Midwest causing an expected surplus in stockpiles. As opposed to the South, rainfall conditions in the Midwest had been ideal for corn.

On Aug. 26, the price corrected, as the latest unfavorably hot conditions affected expectations for the crop. Corn shot up 28 cents a bushel on the day for a 5.96 percent gain. Grain is also up, gaining 4 percent. Soybeans, especially sensitive to late-season heat waves, is up 4.82 percent.

Agriculture ETFs followed the daily gains of wheat, soybeans, and corn.  Teucrium Corn (CORN) is up 6.24 percent to hit $37.80 a share. iPath DJ-UBS Grains TR Sub-index ETN (JJG) is up 5.81 percent to hit $49.57 a share. ELEMENTS Rogers International Commodity Agri ETN ($RJA) is up 3.12 percent to hit $8.53 a share.

PowerShares DB Agriculture Double Long ETN ($DAG) was a big winner, gaining 6.32 percent to hit $9.25 a share.

(image courtesy of Flickr)

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
BJINY Beijing Enterprises Holdings Ltd ADR (Sponsored) 48.93 0.42 0.86 1,836


Emerging Growth

Naked Brand Group Inc

Naked Brand Group Inc through its wholly-owned subsidiary is engaged in manufacturing and selling of direct and wholesale men's undergarments to consumers and retailers.

Private Markets


Snapchat is the fastest way to share a moment with friends. The mobile app, allows users to not only share photos with friends but also control how long they can…

BioSculpture Technology, Inc.

BioSculpture Technology, Inc. (“BST”) is a commercial-stage medical device manufacturer of liposuction surgical instruments for surgeons. It offers the FDA-cleared Twin Cannula Assisted Liposuction ("TCAL") Airbrush Liposculptor II® controllers, Airbrush®…