Soft Commodities: Cocoa, Cotton and Corn

Can agriculture and other soft commodities provide investors with opportunities for growth this year?

Emma Wall 9 January, 2014 | 4:38PM
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Commodity prices have plunged over the past 18 months – presenting contrarian investors with buying opportunities. But it is not just gold, copper and iron ore that have suffered – soft commodities have fallen in value too.

This could be a good buying opportunity

The db Argiculture Booster ETC (exchange traded commodity) tracks an index comprised of cocoa, coffee, corn, cotton, soybeans, sugar and wheat, and has fallen 24% in the last year. The db S&P GSCI Agriculture ETC has lost 21% of its value in the past 12 months.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BlackRock Gold and General A Acc1,261.04 GBP0.56Rating
DWS Invest Global Agribusiness USD LC171.49 USD-0.35Rating
Sarasin Food & Agriculture Opps A Acc2.30 GBP-0.17Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar