C-rice-es?

The recent natural disasters in Burma and China not only destroyed the food stocks of the disaster areas, they also ruined many planted fields. On top of all this, there may be a famine looming in North Korea. Will these tragedies exacerbate already high food prices?

Why not ask the people who have money on the line? Check out this summary of Powershares DB Agriculture, an ETF tracking agricultural futures markets. On May 2 and May 12, the respective dates of the Burmese and Chinese disasters, the fund was flat. It looks like the disasters weren’t enough to buck the general downward trend over the last six months. Apparently farmers worldwide are expecting bumper crops, so agricultural products are expected to become cheaper after harvest this fall.

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