The Corn ETF

Teucrium, new since 2009, sponsors an ETF that trades on NYSE under the symbol CORN. It is a commodity pool that invests in a number of corn futures and is designe to mirror the daily percentage changes in corn futures.

It should be in my portfolio. Note that the history on CORN only goes back to 6/10/10 and so the chart does not show the 2008 peak in corn, which was June 2008, very close to the peak oil price in August 2008. The corn price has already surpassed its 2008 peak. Some 40% of the US corn crop is now going to make gasoline, and weather has lowered production, and inventories are unusually low.

The stochastics are saying today is not a good time to enter this trade. Daily chart shows it is overbought. Continue to monitor it for an entry on the long side. Looking for other ways to play agriculture.

Here is a brief profile of the corn market from the ETF propsectus, followed by a daily chart for the period January 2006 through December 2009.