An exchange traded fund for corn has been a solid performer this year among commodity portfolios, but the ETF fell sharply in Tuesday’s sell-off.
Corn, agriculture and grains have rallied lately as traders pushed prices higher in the wake of the USDA’s annual planting report. Teucrium Corn Fund (NYSEArca: CORN) was up 19% year to date heading into Tuesday’s drubbing. [Oil, Metals And Corn Lead Commodity ETF Rally.]
It appears Asia’s demand is driving the corn rally to new highs, with the most active May corn futures contract on the Chicago Board of Trade at an all-time high of $7.8375 a bushel during electronic trade Monday, reports Samir Mohindru for The Wall Street Journal.
Analysts warn that current price levels are due for a correction, as buyers may step up purchases of feed wheat instead. The U.S. will need to stay current and competitive with Australia in this market. [Grain, Corn ETF Pop After Planting Reports.]
Teucrium Corn Fund (NYSEArca: CORN)