- Agricultural commodity prices have risen dramatically over the past year due to food shortages in Asia and COVID-related supply-chain issues in the U.S.
- This situation has led to stellar gains for the agricultural futures ETF DBA, which is now generating positive carry due to immense backwardation.
- Overall, while acute shortages may remain, bulk food commodities may have peaked as food shortage factors are expected to decline this year.
- Food inflation is falling in most countries and has turned negative in certain areas.
- DBA may see a large short-term drop if the Federal Reserve takes steps that would boost the precarious U.S dollar.
For further details see:
DBA: Agricultural Commodities May Have Peaked As Global Food Inflation Slips