Grains, Corn ETFs Caught in Sharp Downdraft | ETF Trends

Exchange traded funds tracking grains and corn prices have fallen heavily since the summer along with most commodity prices.

Markets were awaiting a crop report from the U.S. Department of Agriculture later Friday.

A good harvest season has brought a steady supply of grains to the global markets, suppressing grains markets and ETFs that track them.

Grains prices have taken a hit after the International Grains Council recently announced that the 2011-2012 world wheat supply was 3% higher year-over-year due to increased production and carryover stocks, according to Corn and Soybean Digest. The council also noted that the world total production will be the second largest on record this year. However, U.S. production estimates are down 10% year-over-year because of lower-than-expected spring production.

Credit Suisse analysts warn of deteriorating agricultural prices since the market has not provided good value, uncertain weather, ongoing risks from the Eurozone and deleveraging pressures, according to a Wall Street Journal article.

Teucrium Corn (NYSEArca: CORN)