There’s a new exchange traded product (ETP) on the market that finally gives investors a pure play exposure to corn – just in time for those rising prices in the forecast.
The Teuucrium Corn Fund (NYSEArca: CORN) can give investors single commodity exposure to corn. The corn ETF, like Teucrium’s other ETFs in registration, uses staggered futures contracts to track the current price of the commodity. [Other Commodity ETFs Ready to Launch.]
Jeff Benjamin for InvestmentNews says that CORN will be followed by ETFs that offer exposure to beans, wheat, sugar, crude oil and natural gas. Corn is the largest of all commodities and makes up between 4% to 8% of most commodity indexes. [The Risk of Pure Play ETFs.]
The launch of the fund could be well-timed.
Corn usage projections for 2009/2010 increased by 125 million bushels, as higher feed and residual use more than offsets estimated cuts for ethanol production, which was reduced by 50 million bushels to 4.5 billion bushels. Pork Mag staff explain that in its monthly World Agricultural Supply and Demand Estimates Report, USDA increased its corn price range for the 2010/2o11 marketing year from $3.30 to $3.90 per bushel in June to $3.45 to $4.05 in today’s report. On average, USDA sees corn prices at $3.50 to $3.60.
For more stories about corn, visit our corn category.
Tisha Guerrero 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.