Rice Prices Set To Soar: Here Are The ETF Plays (DBA, JJA, RJA)

The ETF Professor
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Posted on 11/16/09 at 4:14pm by The ETF Professor

Rice prices could double to $1,000 per metric ton as bad weather in India, the world's largest rice importer, and the Philippines, the largest exporter, cripple harvests.

Analysts expect rice supplies to be tighter in 2009 than in 2008 and some forecasters believe the price could touch $2,000 per metric ton by the middle of 2010.

Unfortunately, there isn't a pure ETF play on rice available to U.S. investors, but investors may want to check out the ELEMENTS Rogers International Commodity Agri ETN (NYSE: RJA), the iPath DJ AIG Agriculture TR Sub-Index ETN (NYSE: JJA) and the PowerShares DB Agriculture ETF (NYSE: DBA).

All three hold agriculture futures contracts, though rice isn't a top holding in any of these offerings. Still, some exposure to rice given the potential for dramatic price increases is better than none at all.

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DBA does not have any

by Anonymous on 11/16/09 3:35pm

DBA does not have any position in rice and will not partake in its rally you call for

Rice exposure with JJA/DBA???

by Anonymous on 11/25/09 3:52am

Rice exposure with JJA/DBA??? Let's get this straight. JJA and DBA has 0% exposure to rice. Yes, zero percent.

It literally takes just three minutes to find such information from funds' homepages. Apparently, the author of the post didn't bother spending three minutes to become aware of what he/she is writing.

Well, I guess irresponsible posting like this one is not anything new on this website.

In any case, the other ETF mentioned in the article, RJA, does indeed have exposure to rice;  the underlying index allocates 1.43% to rice futures. As far as I know, this is the only way to get an exposure to rice through ETFs.

I apologize for not making

by ETF Professor on 11/25/09 4:39am

I apologize for not making clear the JJA and DBA do NOT have rice exposure. I was trying to suggest ETFs with soft commodities exposure that may benefit from higher rice prices as investors potentially start to favor grains in general. I thank you for reading and hope that you have found some value in my other posts.

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