If you’re not into coffee, your morning glass of O.J. could also be at risk from rising food prices.
Unusually cold temperatures thanks to the polar vortex and other weather patterns have resulted in rough outlooks for citrus producers. But to add insult to injury, this cold snap comes after a 19% gain for orange juice futures in 2013 thanks to a persistent disease known as “greening.”
Unfortunately, while investing in orange juice futures may be lucrative, retail investors have very few options because the market isn’t as deep as other agricultural commodities.
The broad-based Powershares DB Agriculture Fund (DBA) is an exchange-traded product that deals in a diverse group of commodities, including cattle and grains and orange juice. Thanks in part to strength in orange juice as well as pricing for other foodstuffs, the DBA fund is up about 10% in 2014.