Exchange traded funds that track the movement of agriculture and soft commodities have been beaten down on fears of an economic slowdown and following higher-than-expected inventory data.
PowerShares DB Agriculture Fund (NYSEArca: DBA) has fallen to its low for 2011 while Teucrium Corn Fund (NYSEArca: CORN) is down about 20% over the past month.
The U.S. Department of Agriculture report last week revealed farmers are sitting on 1.128 billion bushels of corn, which was 23% higher than previously estimated, The Wall Street Journal reports. Traders were expecting inventories to fall below the 1 billion mark.
The record prices over summer also forced livestock and poultry farmers to switch to an alternative grain as a source of feed.
Grains-related ETFs have also been feeling the heat, including Teucrium Soybean Fund (NYSEArca: SOYB) and Teucrium Wheat Fund (NYSEArca: WEAT).