The corn exchange traded fund jumped higher Tuesday as traders reportedly covered short positions ahead of the U.S. Department of Agriculture’s report on Wednesday.
The Teucrium Corn Fund (NYSEArca: CORN) was up nearly 6% in afternoon trading Tuesday. The ETF tracks corn futures.
The USDA will issue its report on acres, yields and surpluses early Wednesday morning, reports Dan Piller for the Des Moines Register.
Commodity trader Don Roose of US Commodities in West Des Moines believes that corn has been “deeply oversold” after dropping over the summer. “The market is awfully nervous before that report tomorrow. We’ve been surprised before,” Roose added.
Broker Tomm Pfitzenmaier believes that the drier conditions could help drive up prices.