PowerShares DB Agriculture Fund
) - This
exchange traded fund
(ETF) seeks to track the price and performance of the Deutsche
Bank Liquid Commodity Index.
On Dec. 28, at $30, the
Trade of the Day
said: "Food shortages and higher prices for commodities like
wheat, corn, soybeans and sugar are being forecast by economists
worldwide. And the recent move by China to raise interest rates
is evidence that the country's central planners are concerned
about possible inflation in food prices that could cripple their
"As for agriculture ETF DBA, note the impressive pickup in
volume on the chart, as well as the golden cross and the recent
breakout from a
following a bounce from its 50-day moving average."
Rising food costs, or food inflation, are at the
forefront of investors' minds as storms in the United States and
Australia helped drive up grain and livestock prices. And sugar
futures jumped to their highest levels in more than three
I'm raising the near-term target for DBA from $36 to $40.
Long-term investors may want to hold this ETF as a cornerstone
investment with a price objective north of $50.
If you have questions or comments for Sam Collins, please
e-mail him at