Ag ETFs Rise as Stocks Pause

Agricultural commodities are in demand as weather-related supply disturbances that have sent prices of grains such as corn and wheat higher in the last few months.
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NEW YORK (

TheStreet

) -- ETFs focused on agricultural commodities were rising on Monday morning, as stocks paused for breath.

The

UBS E-Tracs CMCI Agriculture TR ETN

(UAG) - Get Report

, which tracks an index consisting of 12 agriculture futures contracts, was up 6.5%. A sister ETF,

UBS E Tracs Food ETN

(FUD) - Get Report

was gaining 3.5%, while the

iPath DJ-UBS Cotton TR ETN

(BAL) - Get Report

was rising 2%.

Agricultural commodities are in demand as weather-related supply disturbances have sent prices of grains such as corn and wheat higher in the last few months.

Among equity ETFs, the

Claymore/NYSE Arca Airline Index

(FAA)

was a major gainer, rising 4% after

Southwest Airlines

(LUV) - Get Report

agreed to acquire

AirTran Holdings

(AAI)

for $1.4 billion. The ETF has a 13.7% exposure to Southwest Airlines, which was surging 9.6% on Monday forenoon trading.

The

Market Vectors gaming ETF

(BJK) - Get Report

was also in focus following news on

MGM Resort's

(MGM) - Get Report

plans to list its Macau operations.

Emerging market ETFs such as the

Market Vectors Indonesia

(IDX) - Get Report

and

iShares S&P Latin America 40 ETF

(ILF) - Get Report

dominated the equity ETF buy list, while utility ETFs such as

Rydex Equal Weight Utilities

(RYU) - Get Report

and

First Trust Alphadex Utilities

(FXU) - Get Report

, up 0.3% each, were rising among domestic equities.

-- Written by Shanthi Venkataraman in New York

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Shanthi Venkataraman

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