U.S. farmers harvested some of the largest corn and soybean crops in history this year. The timing couldn’t be much worse for farm incomes and commodity prices. And for shares of farm stocks.
I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. My one-hundredth-and fifteenth YouTube video “Quick Pick Agricultural Commodity ETN JJA” went up today. This week’s Quick Pick is an ETN that tracks agricultural commodities. What I’m looking for is a chance to buy commodities, particularly wheat and corn, in the midst of the Russia-Ukraine war. Don’t forget that these are two of the biggest regions for producing and shipping wheat and corn. And right now nothing in grain silos in Ukraine can get out across the Black Sea. This ETN has a decent expense ratio compared to competitors and is focused on food–no oil or natural gas. I’m adding it to my portfolios in complement to the DJP ETN, which does include those energy commodities.
How does the lyric go (as sung by Albert King)? “If it wasn’t for bad luck, I would have no luck at all.” Maybe that song should be the theme song for the global food market right now. This month China’s agriculture minister Tang Renjian told colleagues at a high-profile government meeting in Beijing this month: “China faces big difficulties in food production because of the unusual floods last autumn. Many faming experts and technicians told us that crop conditions this year could be the worst in history.”
