We’re seeing a potential rotation out of metals… and into food commodities.
And one ETF to watch?
Invesco DB Agriculture Fund ETF (NYSEARCA: DBA)
The Agriculture Fund ETF (DBA) tracks a basket of grains and softs. That includes wheat, corn, sugar, the essentials.
Now here’s the setup.
Support comes in around 26.80. (Note this is a weekly chart)
If DBA can hold that level, this could be a move to 40 this year.
But this isn’t just technical.
This is macro… and it’s powerful.
A potential mega El Niño is forming, possibly the strongest since the 1877 event that devastated global food supply.
Scientists watching this?
They’re getting nervous.
Add to that:
War has disrupted fertilizer supply.
Farmers are already behind.
And drought conditions could tighten supply even further.
So regardless of rates…
regardless of the dollar…
Food is non-negotiable.
And when supply gets tight?
Prices move.
Bottom line?
Keep your eye on DBA.
Because food commodities may be the next big rotation in this market.
Twitter: @marketminute
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.
