Gains for Grains: Some Agriculture ETFs are Ready to Rally

On an individual basis, each of those three commodities have been perking up in recent weeks. This how strong that trio has been: Of the Teucrium Corn Fund (NYSEArca: CORN), Teucrium Soybean Fund (NYSEArca: SOYB) and theTeucrium Wheat Fund (NYSEArca: WEAT), WEAT is the worst performer over the past month with a gain of 4.6%. SOYB and CORN are up an average of 8.3% over that period. [Obscure Ratio Could be Good News for Corn]

Last month, Teucrieum highlighted favorable signals from the gold/corn ratio, indicating that more upside could be on the way for corn. Similar scenarios could be afoot for SOYB and WEAT.

The Gold/Soybean Ratio is defined as the number of bushels of soybeans one could buy with the proceeds from selling one troy ounce of gold at a specific day’s settlement prices,” according to Teucrium.

As of the end of the third quarter, the gold/soybean ratio resided just below 133, nearly double the mean seen since 1976. At the end of the third quarter, the gold/wheat ratio was 253.4, more than double the mean of 122.5 since 1976, according to Teucrium data.

“The gold/corn ratio may have been at its historic 38 year high at the end 2014’s third quarter, but other major agricultural crops were also very near all-time historic highs for the same time period,” according to Teucrium.

Gold/Soybean Ratio

Chart Courtesy: Teucrium