The Russia-Ukraine war and the recent lockdown of major Chinese cities in response to a surge in COVID-19 cases have raised concerns over the supply of major agricultural commodities from these prominent exporters. Furthermore, following the surge in oil and natural gas prices precipitated by the U.S. ban on Russian energy imports, commodity prices have spiked recently.
Therefore, domestic agricultural commodity producers should witness surging demand and benefit from the rising commodities prices worldwide. Consequently, ETFs that offer significant exposure to agricultural commodities could be good bets now.
