Trading Food Inflation (MOO, DBA, FUD, CF, POT)

The World Bank says food prices are at "dangerous levels," and more people are moving into poverty since last summer as a result of rising food prices. According to the latest edition of its Food Price Watch, prices of food rose 15% from October to January, which hurts the poor that much more. More than half of their disposable income is spent on food, and the issue needs to be addressed. The World Bank's president, Robert Zoellick, said in a statement: "Global food prices are rising to dangerous levels and threaten tens of millions of poor people around the world." Zoellick also said that rising food inflation is part of the reason for the unrest in the Middle East and Northern Africa, although not its primary cause. There is a way to trade food inflation if you believe it will continue to happen. Buying shares of commodity ETF's linked to agriculture, such as PowerShares DB Agriculture Fund DBA, Market Vectors Agribusiness (ETF) MOO, and UBS E-TRACS UBS Bloomberg CMCI Food TR ETN FUD would be potentially profitable if food prices continue to rise. These exchanged funds (ETFs) purchase a variety of agricultural commodity futures, and increases in the price of wheat, corn, cattle, and other food prices will benefit shareholders of these securities. Similarly, buying shares of fertilizer companies, like Potash Corp. POT or CF Industries CF is also a potentially profitable way to trade this issue. It's a serious issue that needs to be addressed for many across the world, and there is a way to take advantage and profit from it. Disclosure: no position in names mentioned