Getting Cozy With the Corn ETF

Commodities exchange traded products, particularly those tracking agriculture and soft commodities, delivered some impressive first-quarter performances.

By now, many investors know the surge in coffee futures and the iPath Dow Jones-UBS Coffee Total Return Sub-Index ETN (NYSEArca: JO). JO was the best-performing non-leveraged ETF in the first quarter after surging 59.4%. [Coffee Could Rally Again]

Coffee’s run has left some commodities investors looking for the next with some pointing to corn and the Teucrium Corn Fund (NYSEArca: CORN) as a legitimate candidate to rally on par with coffee. CORN did not disappoint in the first quarter, soaring 13.5%. [Calling on Corn]

CORN “broke out from a short-term consolidation on heavy volume on March 31, after a three-week consolidation. Note the drop off in volume during the base of consolidation, which was bullish,” notes Deron Wagner of Morpheus Trading Group.

A more detailed look at CORN’s charts and price action reveals the ETF could be gearing up to add to its first-quarter gains.

“When the price of CORN broke out yesterday, it pushed above the highs of that 4-week range. It’s also quite bullish that yesterday’s volume alone nearly equaled turnover the entire previous week,” according to Wagner. “With such strong volume confirming a clean weekly breakout and trend reversal, bullish momentum is likely to carry $CORN substantially higher over the next several weeks.”

“The USDA also projected that farmers will plant 4% less corn this year than the prior year, choosing instead to plant soybeans, which have commanded higher prices,” according to TheStreet.com.

CORN closed just over $35 on Tuesday and has not closed above $36 since August 2013.

Teucrium Corn Fund

ETF Trends editorial team contributed to this post.

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