Corn ETF is Standout Performer in Third Quarter

September 25th at 7:30am by Tom Lydon

The corn exchange traded fund has been one of the best performing funds in the third quarter as the worst drought in half a century decimated crops. However, corn prices are beginning to drop as the supply and demand imbalance alleviates somewhat.

The Teucrium Corn Fund (NYSEArca: CORN) slid 0.4% Monday, but the fund is still up 28.1% over the past three months.

“Prices of grains and soybeans may have already peaked as the news around the drought in the U.S., as well the weather in FSU and Australia is pretty well priced in,” Tim Hornibrook, an executive director of Macquarie Agricultural Funds Management, said in a Bloomberg article. [High Corn Prices Fuel Agribusiness ETFs]

Now, farmers are putting their corn harvests to market early, with almost half of the country’s corn already harvested, reports Walt Breitinger for Times Business.

“Things were overbought and we are now a seeing a correction as historically these type of rallies end up in a selloff,” a Melbourne-based commodities analyst said in a Reuters article. “The market is looking at a larger South American crop, slowing Chinese demand and higher production estimates in the U.S.”

Nevertheless, many are still feeling the pain of costlier corn. Then again, it doesn’t look like farm cattle is complaining much as farmers sweeten the typical corn feeds with cookies, gummy worms, marshmallows, fruit loops, orange peels and dried cranberries, reports Carey Gillam for Reuters.

“It’s a pretty colorful load,” Mike Yoder, who owns about 450 dairy cows, said in the Reuters article. “Anything that keeps the feed costs down.”

Teucrium Corn Fund

For more information on corn, visit our corn category.

Max Chen contributed to this article.

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.

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