Corn, soybean and agriculture-related ETFs rallied Monday morning following a report forecasting that crop yields will be lower than expected this year.
“Corn and soybean production probably will be smaller than the government predicted after planting delays and unusually cool, dry weather stunted growth, field samples by the Professional Farmers of America showed,” according to a Bloomberg News report.
Teucrium Corn Fund (NYSEArca: CORN) was up more than 5% at last check. Teucrium Soybean Fund (NYSEArca: SOYB) rallied 3.5% while iPath Grains ETN (NYSEArca: JJG) added 4.9%.
“The prediction of continuing hot and dry weather in growing areas of the U.S. is responsible for the rising prices,” Eugen Weinberg, head of commodities research at Commerzbank, told Bloomberg. “These conditions could have a significant impact on crop yields, especially since sowing was delayed this year and plants are lagging behind the normal growth pattern.”
iPath Grains ETN
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