Chart of the Day: Invesco DB Agriculture Fund: SWM 05/04/2022

Chart of the Day: 05/04/22

Invesco DB Agriculture Fund

(DBA, NYSE)

ACB: $20.70

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• DB Agriculture ETF is designed as a rules-based index composed of futures contracts on some of the most liquid and widely traded agricultural commodities.

• Global food supply is under pressure for a variety of reasons, most of them related to bad policy, exacerbated by the Russia/Ukraine conflict. It's difficult to imagine how prices for wheat, corn, soybeans etc. will not go higher. A halt in hostilities is unlikely to prevent this, in my view.

• The DB Agriculture ETF (DBA) also succumbed to selling pressure over the last two weeks as it fell around 4%. The decline, however, looks like a short-term bullish continuation pattern (small falling wedge). The long-term trend is clearly up so this is viewed as a pullback within this uptrend. A wedge breakout would signal an end to the pullback and a resumption higher.