Covering Potash Stocks, Agri Trends, Options and World Demand.
Covering Potash Stocks, Agri Trends, Options and World Demand.
Here is a collection of Agricultural funds (UPDATED NOV 2010). These funds are made up of future’s contracts in a number of different and diversified areas relating to agriculture. The relative strength of these markets is important to Potash Futures pricing.
Note: Any text on this page is a cut and paste from the associate funds page, so expect positive spin throughout. All funds are listed alphabetically.
Click the more button to get all of the info, management fees, options info and the holdings of each fund/etf.
NOTE: Included are current weights and past weights from mid-2008. Most funds have seen changes in Corn & Soybeans, while Wheat holdings have remained relatively flat.
Management Fee: 0.85% (up .10 percent from previous 0.75%)
Options: Yes
Website: http://www.powershares.com/products/overview.aspx?ticker=DBA
The PowerShares DB Agriculture Fund (Fund) is based on the Deutsche Bank Liquid Commodity Index – Optimum Yield Agriculture Excess Return™ (Index) and managed by DB Commodity Services LLC. The Index is a rules-based index composed of futures contracts on some of the most liquid and widely traded agricultural commodities – corn, wheat, soy beans and sugar. The index is intended to reflect the performance of the agricultural sector. You cannot invest directly in an index. Ordinary brokerage commissions apply.
Index Weight: 11/09/10
Past Index Weight: 03/13/08
Management Fee: 0.75%
Options: No
Product Website: http://www.elementsetn.com/
MLCX Grains ELEMENTS are intended to provide investors with exposure to the grains sector of the global commodity market. The performance of MLCX Grains ELEMENTS is linked to the MLCX Grains Index – Total Return (MLCX Grains Total Return Index).
Index Weight as of June 2010:
Index Weight: 04/13/08
Management Fee: 0.75%
Options: No
Website: http://www.ipathetn.com/iPath-Dow-Jones-AIG-Agriculture-Total-Return-Subindex-ETN-overview.jsp
The iPath® Dow Jones-AIG Agriculture Total Return Sub-IndexService Mark ETN offers investors cost-effective exposure in agricultural commodities as measured by the Dow Jones-AIG Agriculture Total Return Sub-IndexService Mark (the “Index”).
Current Make-up:
Past Components: Feb 29th, 2008
Management Fee: 0.75%
Options: No
Website: http://www.ipathetn.com/iPath-Dow-Jones-AIG-Grains-Total-Return-Subindex-ETN-overview.jsp
The iPath® Dow Jones-AIG Grains Total Return Sub-IndexService Mark ETN offers investors cost-effective exposure in grain commodities as measured by the Dow Jones-AIG Grains Total Return Sub-IndexService Mark (the “Index”).
Current Holdings:
Management Fee: 0.75%
Options: No
Product Website: http://www.elementsetn.com/
RICI-Agriculture ELEMENTSare designed to track the performance of the Rogers International Commodity Index– Agriculture Total Return. (RICI-Agriculture Index).RICI-Agriculture ELEMENTSare intended to provide investors with exposure to commodities in the agriculture sub-sector.
Current ETF Holdings:
Prior Components:
Management Fee: 0.85%
Options: No
The Lehman Brothers Commodity Index Pure Beta Agriculture Total Return is a commodities index focused on agriculture. The index is currently composed of eight futures contracts broken down into grains (corn, soybean meal, soybean oil, soybeans, and wheat) and softs (coffee, cotton, and sugar). Liquidity and open interest are important factors in index constituent selection. This second-generation index is designed to track commodity “spot” returns, and may generate greater returns than first-generation indices. The returns of the index reflect the returns of the underlying agricultural commodities futures contracts (plus the return on invested cash).
Opta Lehman Brothers Commodity Index Pure Beta Agriculture Total Return ETN returns are based on the performance of the index, less investor fees. The ETN will be available to investors on the American Stock Exchange (AMEX).
Management Fee: 1.15%
Options: No
The HBP Agriculture Bull (Bear) Plus ETF seeks daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to two times (200%) the daily performance of the Dow Jones-AIG Sub-Grains Index SM.
If the HBP Agriculture Bull (Bear) Plus ETF is successful in meeting its investment objective, its net asset value should gain (lose) approximately twice as much, on a percentage basis, as the Dow Jones-AIG Sub-Grains Index SM when the index rises on a given day. Conversely, the HBP Agriculture Bull (Bear) Plus ETFs net asset value should lose (gain) approximately twice as much, on a percentage basis, as the index when the index declines on a given day.
(Note: I could not find a graphic from the horizon website. This states that the fund is typical of the dow aig-grain sub index, with the heaviest weight belonging to soya)
– A new commodity ETF has been introduced on the TSE for those that trade Canadian markets. Horizon Beta Pro’s TSE:HAU represents a Double Bull commodity combination Wheat(30%), Corn(24%), Soybeans(46%). And on the flip side the TSE:HAD is a Double Bear of the same. Both move twice as much as the underlying commodity. Price is an easy low price to trade of presently $20 area which should encourage good volumes. This adds to the other Double Bull and Double Bear ETFs on the TSE in Crude, Gold, Gold Stocks, Financials and the Tse 60. Just need to pay attention to decent volumes for easy entry and exits. Will be interesting to see what volumes and chart pattern this new ETF displays over the next few months. All these ETF’s can be traded in a stock account including tax exempt selve directed retirement accounts. Nice to be able to have a way to short in a tax exempt registered retirement account as a choice now.
Canpotex, the export arm of Canadian potash producers Agrium, Mosaic and Potash, reported on Friday (Feb 19th) that it had inked a deal with Indian Buyers to the tune of 600,000 tones at a price level of $370 per tonne.
The prior week Canpotex signed a deal to sell 350,000 tonnes to China at an undisclosed price. Analysts estimated the per tonne price of the China contract to be in the $350-$360 range.
Last week, Canpotex signed a deal to sell 350,000 tonnes of potash to China’s Sinofert at an undisclosed price. This lead to a 5% jump on increased volume for all three Canpotex stocks (AGU, MOS, POT).
Potash prices have plunged from near $1000 per tonne highs down to the current $350-$400 range due to global economic difficulties, lowering grain prices and producers using up all of their back-stock of Potash fertilizer.
Friday’s news (Indian contract) itself did little to pop the stock or increase the volume, as both stayed near the levels of Wednesday and Thursday’s sessions. A rough start to the week has pushed POT back below the $110 level, where it was beginning to set up a short-term resistance level.
Two members of TheStreet.com’s staff made bullish comments towards the Potash and agriculture stocks on March 25th.
Jim Cramer, the founder and head honcho of The Street said the following about Potash on Mad Money:
“I think that (Potash) works, I think that the fertilizer bull market is alive and well… we saw an unbelievable quarter from them.. the pullback, even as miniscule as it might be vs. $122 stock, makes it a buy, buy, buy… I think the fertilizer industry is strong…
Realmoney.com writer Tim Melvin made some bullish comments about the agricultural sector this past week but he likes to target some of the food processor’s instead of the pure Potash plays.
The main play he focusses on is Archers Daniel Midland (ADM).
His reasoning for this play:
It might be better to look at indirect plays on the global rise in demand for agriculture products. Keep in mind that during the gold rush, only some miners got rich. Everyone who sold the picks, shovels and supplies to the prospectors made a fortune. In the agriculture trade, the pick and shovel picks are probably the food processors
Melvin’s comments towards Archers:
The company is one of the largest grain processors in the world today. In addition to getting a boost from rising food demand, the company is going to benefit from the continuing and growing government mandates for the use of ethanol.
Archers is currently trading at a P/E of 15.96, has a market cap of 18.26B. Analysts have a high one year target of $37.00.
On friday 1,000 lots of June10 $30 strike call options changed hands. Currently shares are trading at $28.42
Here is a collection of Agricultural funds (UPDATED NOV 2010). These funds are made up of future’s contracts in a number of different and diversified areas relating to agriculture. The relative strength of these markets is important to Potash Futures pricing. Note: Any text on this page is a cut and paste from the associate [...]
Posted On: November 10, 2010
