NEW YORK ( TheStreet) -- Heavy rain in Australia and dry weather in the U.S. are expected to take their toll on global grain production, pushing prices higher and providing positive support to the iPath DJ-UBS Grains TR Sub-Idx ETN (JJG), the ELEMENTS MLCX Grains Index TR ETN (GRU) and the PowerShares DB Agriculture Fund (DBA).To further add to grain's appeal, the supply and demand imbalances of global grains are expected to widen as competition among major crops for limited acreage amplifies, weather conditions continue to take their toll on global production and demand increases due to population growth and increased global wealth. In fact, the United Nation's Food and Agriculture Organization expects global wheat stock levels to drop by 10% from last year to 181 million tons.
- iPath DJ-UBS Grains TR Sub-Idx ETN which tracks an index that allocates nearly 23.6% of its assets in wheat futures contracts;
- ELEMENTS MLCX Grains Index TR ETN tracks an index that holds four grain-based commodities including wheat and soybeans;
- PowerShares DB Agriculture Fund allocates 12.5% of its assets to wheat .