An exchange traded fund (ETF) that invests in corn futures has rallied this year but was fractionally lower early Monday following quarterly results from Corn Products International (NYSE: CPO).
Corn Products shares were up more than 2% after the corn processor reported first-quarter profit that blew away Wall Street forecasts.
Teucrium Corn Fund (NYSEArca: CORN) is up nearly 20% so far this year.
“A range of unrelated factors–from weather to government policies–have an impact on the price of corn. As a result, the change in the price of corn can be very volatile,” says Morningstar analyst Patricia Oey in a profile of the fund.
The ETF is the only product on the market that lets investors track corn prices.
“Global rising standards of living, as well as the anticipated growth in the use of ethanol for fuel, are expected to drive demand for corn in the long term,” Oey wrote.
Teucrium Corn Fund (NYSEArca: CORN)
