The last time we highlighted CORN (Teucrium Corn Fund) was in mid-July, with the exchange traded fund trading roughly around current price levels. The ETF went on a nice run through the end of August, ultimately trading as high as $50.69 a share before retreating sharply in recent months.
CORN actually flirted with new 2011 lows late last week before its latest 3 day rally, closing yesterday at $39.85. The ETF does remain below both its 50 and 200 day moving averages however despite the latest signs of life.
CORN is structured as an ETF, and follows a systematic investment schedule owning corn futures contracts that trade on the CBOT, designed to give the investor exposure to appreciation in corn futures. The fund’s investment methodology was also designed to mitigate the effects of contango and backwardation in the futures markets, which potentially can hurt returns, not to mention confuse end investors whom are not familiar with these nuances in the commodities futures markets.
We believe CORN also will find appeal among CTA’s (Commodity Trading Advisors) whom may be delving into the ETF/ETN space, applying their futures trading skills to a new niche market, which we are seeing more of these days.
CORN typically trades around 84,000 shares on an average daily basis but the underlying liquidity present via the futures based structure of the product and the robust nature of this market allows for larger trades to be made possible in the ETF with mitigated price impact.
CORN, like many commodity based ETFs, has experienced weakness over the past several months but it is finally showing some resolve in recent sessions, causing us to keep our eye on the fund like we did in July before it sprang back to life and posted an impressive rally.
Teucrium Corn Fund