In many American cities, temperatures have stayed well above
100 degrees Fahrenheit for the last few weeks. While some could
be seeing relief, cities that avoided the triple digit heatwave
in the western U.S. are set to see temperatures spike. Here are
some securities to watch for the continuation of the
1. Teucrium Corn Fund (NYSE:
The Teucrium Corn Fund is an ETF that invests in corn
futures--the front, second, and third month futures specifically.
As the heatwave ravaged Midwestern states known for agricultural
production, corn prices have risen. After the close today, the
USDA is set to release its weekly Crop Progress Report. If the
USDA reports that more crop was damaged due to the heatwave, corn
prices could rise (as supply of good quality corn is expected to
2. NV Energy Inc. (NYSE:
Nevada is one of the states expected to see a surge in
temperatures over the next few days. Temperatures in Las Vegas
could remain above 110 degrees for the next three days, ramping
power demands. As temperatures climb, the stock price might as
well, and investors may consider adding NV Energy to their
portfolios as a bet on higher temperatures in Nevada.
3. U.S. Natural Gas Fund (NYSE:
Natural gas prices have had a strong run over the last few
months, with benchmark Henry Hub Natural Gas futures rising from
multi-year lows earlier this year. In April, prices traded below
$2 per bcf and have since traded higher to $2.94 per bcf. Should
the heatwave continue, demand for natural gas could increase, as
it is used for powering homes and appliances. Thus, higher
temperatures could increase demand for air conditioning, fans,
and other summer-specific appliances, increasing demand for power
and by default natural gas.
(c) 2012 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.