After surging on a record dry spell, the corn exchange traded fund has been withering over the past year as a bumper crop year pushes U.S. stockpiles to a 19 year high.
The Teucrium Corn Fund (NYSEArca: CORN) was down 0.9% Thursday. CORN fell 4.6% over the past month and dropped 30.1% over the last year.
Analysts project that inventories on Dec. 1, the first tally since the harvest was complete, totaled 10.764 billion bushels, or a 34% increase year-over-year, the largest gain for the date since 1994, reports Jeff Wilson for Bloomberg.
Framers across the world are fueling a global glut in corn after a the worst drought in half a century decimated crops in 2012 and skyrocketed corn prices. [How High Can Corn ETF Rally on Drought?]
Corn futures touched a record $8.49 a bushel in 2012, compared to March futures, which are falling close to $4.0 a bushel.
“We have moved away from a supply deficit after the 2012 U.S. drought to one of surplus corn supplies,” Bill Tierney, the chief economist for AgResource Co., said in the article. “It will take two or more years for demand to catch up to more-abundant inventories.”