The rising dollar should be a problem for commodities, but some commodities exchange traded products are shaking off the strong greenback to move higher.
For example, the Teucrium Corn Fund (NYSEArca: CORN), the only corn-specific ETF on the market, is higher by almost 3% over the past week and it appears corn futures have some momentum.
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.
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CORN provides investors unleveraged direct exposure to corn without the need for a futures account. The Teucrium Corn Fund was also designed to reduce the effects of backwardation and contango,” according to Teucrium.
Supporting the commodities outlook, the China, the world’s top consumer of metals, grains and energy, is seeing its economy stabilize. China and India loom large for corn prices and CORN going forward.