Exchange traded funds that invest in corn and grains stumbled badly Thursday after government reports estimated famers are planting more corn, while inventories are higher than expected.
“This is a definitely a shock to the system. We had two whammies with acreage and stocks,” Jerry Gidel, an analyst for North America Risk Management Services, told Dow Jones Newswires.
Traders were caught off guard by two reports from the U.S. Department of Agriculture as one report showed farmers planted more corn this spring, while U.S. inventories as of June fell from a year ago but were sharply higher than analyst forecasts, according to the report.
Teucrium Corn Fund (NYSEArca: CORN) was down nearly 10% in afternoon trading Thursday, while iPath Dow Jones-UBS Grains ETN (NYSEArca: JJG) dropped 7%.
The agriculture-sector ETFs are down sharply in June. [Grains, Corn ETFs Fall]
Teucrium Corn Fund
The opinions and forecasts expressed herein are solely those of John Spence, 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.