Invesco DB Agriculture FundNYSE American: DBA

'Fast Money' trader Katie Stockton talks investing in agriculture, trading on volatility and more.

The Invesco DB Agriculture Fund ETF holds futures contracts of agricultural commodities, with a large weight in cocoa. The DBA fund is currently attractive due to long-term structural changes driven by climate change and the potential for inflation. Cocoa prices have surged, helped by the spread of Swollen Shoot disease, supply likely to be curtailed further.

Investors have been navigating a complex financial landscape marked by persistent inflation and geopolitical uncertainties. Amid this backdrop, commodity stocks to buy remain a focal point.

Cocoa prices surged significantly, rising fourfold, before undergoing a recent decline. Price volatility has been exacerbated by supply problems and limited market liquidity. There is continued strong global demand for cocoa, as grindings have risen in all regions. While Latin American cocoa producers may boost output, it will not be sufficient to address the severe supply shortages in West Africa in the short term.

Investors looking for momentum may be interested in keeping an eye on Invesco DB Agriculture ETF DBA, as the fund recently reached a 52-week high and has increased by 24.7% from its low of $20.34/share.

Not the first time I have given readers this list of leading indicators to watch for a potential rise in inflation: Last week we focused on sugar. For the weekend, we focused on silver.

The increasing global population supports demand for agricultural commodities. Increasing demand for biofuels supports grain and sugar prices. Inflation has increased production costs, putting upside pressure on agricultural commodity prices.

Invesco DB Agriculture Fund aims to make investing in commodities easier for investors. The fund tries to avoid the negative effects of contango by finding the best contract to own for the next 12 months. We examine the setup.

The Invesco DB Agriculture Fund ETF takes a basket approach to invest in agricultural commodity futures. The developing El Niño event is negatively impacting multiple crops, such as rice and sugar. It is now starting to show up in wheat data as well. As we enter the Fall harvest season, I expect data to get incrementally worse for crop yields, supporting higher prices.