On Wednesday, Deutsche Bank announced plans to restructure its commodities ETFs, the PowerShares DB Commodity Index Tracking Fund (NYSEArca: DBC) and PowerShares DB Agriculture Fund (NYSEArca: DBA).

We covered the story here.

The move wasn't that surprising. After all, when the CFTC revoked DB's position limits back in August, it was really just a matter of time before the two funds either got a makeover or shut down entirely.

But DB's restructuring plans are more than just a new coat of lipstick. The revisions, slated to take effect between Oct. 19 and 31, will significantly change the commodities exposure these funds can give investors.

DBA and DBC, currently worth $2.2 billion and $3.3 billion, respectively, are two of the most popular commodities ETFs. With their high concentrations in just a few key contracts, the funds are ideal for gaining exposure to the Big Guns of the commodity markets.

DBA, for example,

This morning, MarketWatch tells us there’s been “a broad-based decline” of shares in Europe. Apparently, “capital adequacy worries” over banks are the cause. We presume this is a polite way of saying banks have no money. 

At least the Europeans are owning up to the fact; in the U.S. investors are still pretending that the emperor’s new clothes are real. The pan-European Dow Jones Stoxx 600 index is down 1.2%, down the second day in four.

Shanghai stocks have also taken a bath. They’ve suffered their worst fall since November. This time, the worry is that the Chinese government will tighten its loosey-goosey monetary policy. According to MarketWatch, “The Shanghai Composite Index dropped 5.8% to 2,830.63, closing below the 3,000-point level for the first time since the end of June.”

Japanese shares are also down, despite recent data showing that the Japanese economy expanded during the second quarter. Japan’s Nikkei 225 Average fell

While the dumb money is chasing the rally in stocks; the smart money is keeping a close eye on the economy. Bill Bonner has been hammering home this point in the Daily Reckoning. We’ve been doing the same here at Notes. (Consider it a friendly warning.)

There may be money to be made in stocks right now. However, before jumping in consider the following facts (which we’ve plundered from yesterday’s Daily Reckoning):

1) Unemployment has risen to 9.4 million, according to heavily doctored “official” Bureau of Labor and Statistics figures. In reality, the number is much higher. People without jobs don’t spend money. They also rely on handouts from the government. One in every six dollars of personal income in America now comes in the form of federal aid.

2) Housing prices have so far been knocked down 32% since the slump began. Housing expert and Yale

Well, here we are on the final trading day of May.  Taking account for the month, the real story’s been agriculture in its manifest forms.

For investors at the sector level, the 9.8% gain scored by the PowerShares DB Agriculture Fund (NYSE Arca: DBA) in May could portend a broader resurgence in commodities. A more vigorous equity market breeze blew at the back of the Market Vectors Agribusiness ETF (NYSE Arca: MOO), however, pushing the fund 17.8% higher for the month.

For now, at least, commodity stocks have the edge over commodities themselves. The tale of the tape is reflected in the MOO/DBA price ratio, which has gained in MOO’s favor this year.

Ag Stocks (MOO) vs. Ag Futures (DBA)

At the individual commodity level, softs – food and fiber futures such as

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The U.S. Dollar is crumbling, down 3.25% this month.  Reality is finally sinking in: enormous budget deficits, out-of-control spending, monster bailouts, and banana republic tactics have put a bulls-eye on the greenback.  Don’t get trampled as the dollar gets taken to the woodshed!

Fortunately, some ETFs and ETNs are designed to exploit such an environment.  We have highlighted many of them here at investwithanedge.com.  Here are are two currency and two gold plays that will allow you to profit from the falling dollar.

PowerShares DB US Dollar Index Bearish Fund (UDN): This one is straight-forward.  It’s the inverse of the US Dollar Index – a basket of major currencies.  If the USD gains against the index, this ETF goes down.  When the Dollar loses, this baby goes up.  Any questions?  Good, you may proceed to the next level.

CurrencyShares Australian Dollar Trust (FXA):

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While the mainstream media has been focused on the run-up in equities, one overlooked sector has turned “red hot,” according to Justice Litle in Taipan Daily. Justice is talking about the grain markets – foodstuffs like corn, wheat, soy and sugar.

This chart shows the price movements since the beginning of the year of the Powershares DB Agriculture Fund (NYSE:DBA). It represents a basket of futures contracts for commodities such as wheat, corn, soybeans and sugar. As Justice says, “Commodity after commodity has roared back to life, thanks to a combination of renewed inflation expectations, a crashing U.S. dollar, and newly bullish fundamentals.”

Last Thursday, we discussed at length the effects that inflationary expectations are having on the market. We said that Treasuries were a bad

Mr. Market has begun to show clear signs of split personality disorder in recent weeks. Now that investors have exhaled in relief that a deflationary apocalypse has been avoided, the new reality of reflation and stagnation is sinking in…

“Mr. Market” is starting to show clear signs of split personality disorder.

On the one hand, certain areas of the market – the ones much favored in the big run-up – have started to wilt and fade as the much-lauded “green shoots” turn brown. On the other hand, other areas of the market – which didn’t participate so much in the rally at first – have started showing signs of life.

Take the grain markets for example. Foodstuffs like corn, wheat, soybeans and sugar have been red-hot in recent days.

We can see this in the Powershares

One of the themes the fund is currently investing in is the secular agricultural boom as people in developing economies upgrade their food quality, as their incomes grow. Thus far, I have been focused mostly on the fertilizer companies, although the equipment and seed plays have also done great. However, in the past few days I have read multiple articles on a new ETF which, if you want to play this trend in 1 fell swoop, provides an interesting (and global) way to diversify across multiple subtrends on this play. The ETF is called Market Vectors Agribusiness (MOO) … yes MOO. How cute. Here is a fact sheet about the ETF.