Grain ETFs Poised to Benefit From Several Angles | ETF Trends

The solution: grain exchange traded funds (ETFs). What’s the problem? A rising global population, a declining supply of fresh water, agriculture requiring more water (crops use about 80% of the U.S. supply) and a falling dollar are adding to the increasing global grain prices.

James Eckler for Seeing Alpha says that the grains, unlike gold and other commodities, don’t rely on crisis or new homebuilding to gain success. Emerging middle class families will want  more and better food, and the grain ETFS are positioned to benefit from this.

For some exposure, take a look at:

  • PowerShares DB Agriculture (DBA)
  • Market Vectors Global Agribusiness (MOO)

For full disclosure, Tom Lydon’s clients own shares of DBA.

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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.