Agriculture commodities includes crops like corn, wheat, soybeans, and many more, as well as livestock products. These assets are crucial in day-to-day life and they offer unique investment opportunity due to their essential role in food production.

Characteristic of agriculture commodities:

1. Essential Demand: The global demand of food is consistent and scales up with the human population. Prices of agriculture products may fluctuate due to the weather which can lead to reduced supplies and higher price.
2. Inflation Hedge: Similar to precious metals, agriculture commodities are usually used as an inflation hedge to fight against inflation. During inflation, food price usually rice and these commodities follows.
3. Investment Channel: Even thought investing in agriculture does not look realistic, people can buy ETF(Exchage Traded Funds) or stock of agriculture company to invest in agriculture.

To sum it up, agriculture commodities serves as an attractive option for investors who wants to diversify their portfolio. However due to seasons and climate changes, prices of agriculture commodities may be more volatile than others.

Price of a popular agriculture ETF throught the years ($DBA):