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Weather Issues Boost Commodity ETFs

By Don Dion

About this article:
Year to date through Nov. 16, the Dow Jones-UBS Sugar Subindex Total Return ETN has gained over 61% as sugar prices continue to rally. Most recently, weather issues in India have helped to further ignite the upward movement. The continued uptrend is also likely to buoy the PowerShares DB Commodity Index Tracking Fund, which has a more than 5.5% weighting in the soft commodity. Year to date for the same period, DBC is up 15.6%. Recently, for the second time, India's largest sugar mill firm, Maharashtra, halted cane crushing. Heavy rains have hindered the company's production, and with mills expected to idle for a couple days, shortages are expected to widen, sending prices higher. Last week, sugar mills across India were stalled for three days as cyclone Phyan dumped heavy rain on the nation. Both Brazil and India, the largest and second-largest sugar growers, have...

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