Characteristics of ETFs Near 52-Week Highs: Drought
Climate issues are certainly relevant to commodity prices. That said, the lack of rainfall on the west coast is more responsible for the increased cost of meat than polar vortexes on the east coast. The iPath DJ Livestock ETN (COW) is at a 52-week peak due to tight cattle supply after years of drought in California and Texas. Similarly, drought in Brazil, the world’s largest producer of coffee, has sent iPath DJ Coffee Total Return (JO) up as much as 72% year-to-date.