“Because the autumnal corn harvest is an immutable fact of nature, cyclical price lows are often established during these critical harvest months,” Sal Gilbertie, President and Chief Investment Officer of Teucrium, said in a research note. “Analysis of historical data illustrates that this seasonal corn harvest pattern can potentially provide opportunities for investors.”
The Teucrium Corn Fund (NYSEArca: CORN), the only corn-specific ETF on the market, hit a low at the end of August and somewhat strengthened since then, rising 0.9% over the past month. CORN remains down 9.9% year-to-date.
SEE MORE: Corn ETF Heading Toward a Bear Market
Looking at the long-term seasonal price pattern of spot continuation corn futures prices for the past 20 and 30 years, Gilbertie noted that during the Northern Hemisphere’s corn harvest, which usually occurs at the start of the fourth calendar quarter, there has historically been a seasonal pattern in the first nearby corn futures market where corn prices for delivery representing next year’s harvest have typically bottomed in the last four months of the prior calendar year.