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While some commodity products physically buy and hold the underlying resources, the majority utilize a futures-based strategy to achieve exposure (see What Every Investor Should Know About Commodity ETF Investing ). Earlier this month, we took a look at commodity ETFs facing steep futures curves (see Three ETFs That Could Be Crushed By Contango ). Below, we profile three commodity products that could potentially generate a positive roll yield in coming months, selling relatively expensive futures to buy less expensive contracts. From the looks of the futures curve for NYMEX-listed sugar futures contracts, investors think sugar still has a ways to fall before bottoming out; October contracts are trading at a 5% discount to May futures. August futures contracts were recently trading for about 5% less than April contracts, a significant discount considering the storage costs associated with this commodity. read more

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