10-K: Teucrium Commodity Trust Reports Mixed 2025 Results Amid Volatility

Teucrium Commodity Trust reported a decrease in overall net assets for 2025, with most funds experiencing net losses, though the magnitude of losses decreased for several funds.

Summary

• Teucrium Commodity Trust's combined net assets decreased to $213,588,976 in 2025 from $224,647,418 in 2024, and $314,547,414 in 2023.
• The Trust reported a net loss of $(26,493,588) in 2025, an improvement from $(47,859,482) in 2024 and $(73,462,767) in 2023.
• Net change in unrealized appreciation on commodity futures contracts was positive at $4,103,348 in 2025, compared to a depreciation of $(6,160,194) in 2024.
• Interest income for the Trust decreased to $8,973,945 in 2025 from $12,977,276 in 2024.
• The Teucrium Corn Fund (CORN) saw its net assets decrease by 27% and NAV per share by 5% in 2025, with a net loss of $(2,492,407).
• The Teucrium Soybean Fund (SOYB) experienced a 54% increase in net assets and a 2% increase in NAV per share in 2025, with a net loss of $(412,389).
• The Teucrium Sugar Fund (CANE) had a 17% increase in net assets but a 14% decrease in NAV per share in 2025, reporting a net loss of $(1,435,086).
• The Teucrium Wheat Fund (WEAT) saw its net assets decrease by 7% and NAV per share by 17% in 2025, with a net loss of $(22,144,000). A 1-for-5 reverse share split was effected on November 25, 2025.
• The Teucrium Agricultural Fund (TAGS) net assets decreased by 39% and NAV per share by 9% in 2025, with a net loss of $(754,284).
• The 7RCC Spot Bitcoin and Carbon Credit Futures ETF (BTCK) was established on September 17, 2025, and seeded with $100 (4 shares at $25.00 each) on December 10, 2025, but had not commenced operations by year-end.
• The average daily change in NAV for each Fund was within plus/minus 10% of its Benchmark for 2025, indicating effective tracking.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as moderately negative due to the overall decline in combined net assets and persistent net losses across most funds, despite a reduction in the magnitude of losses and some positive inflows for specific funds. The ongoing high volatility in commodity markets and regulatory uncertainties contribute to a cautious outlook.

Positives

• The combined Trust's net loss significantly decreased from $(73,462,767) in 2023 to $(26,493,588) in 2025, indicating an improving financial trend.
• Net change in unrealized appreciation on commodity futures contracts turned positive in 2025 at $4,103,348, compared to a depreciation in 2024.
• The Teucrium Soybean Fund (SOYB) demonstrated strong growth with a 54% increase in total net assets and a 2% increase in NAV per share in 2025, driven by investor inflows.
• The Teucrium Sugar Fund (CANE) also saw a 17% increase in total net assets and increased creation of shares in 2025.
• The Teucrium Wheat Fund (WEAT) experienced a significant increase in creation of shares in 2025, indicating investor interest.
• The Sponsor has an information security program and policy aligned with the NIST Cybersecurity Framework, engaging Align for outsourced IT services, cybersecurity monitoring, and disaster recovery.
• Management provides robust oversight of cybersecurity risks, including regular employee training and annual plan reviews.
• The Sponsor holds a patent on business methods and procedures used with the Funds, protecting its valuation engine.
• The establishment of the 7RCC Spot Bitcoin and Carbon Credit Futures ETF (BTCK) as a new series indicates expansion into new asset classes.
• The Sponsor waived $195,175 in expenses for the Funds in 2025, demonstrating a commitment to managing costs for investors.
• The scalability of expenses as total net assets grow may allow for reduced total expense ratios in the future.

Negatives

• The combined Trust's total net assets decreased by 5% from $224,647,418 in 2024 to $213,588,976 in 2025, and by 32% from $314,547,414 in 2023.
• Interest income for the combined Trust continued to decline, from $12,977,276 in 2024 to $8,973,945 in 2025, impacting overall profitability.
• The Teucrium Corn Fund (CORN) experienced a 27% decrease in total net assets and a 5% decrease in NAV per share in 2025.
• The Teucrium Sugar Fund (CANE) saw a 14% decrease in NAV per share in 2025, despite an increase in total net assets.
• The Teucrium Wheat Fund (WEAT) recorded a 7% decrease in total net assets and a 17% decrease in NAV per share in 2025, and underwent a 1-for-5 reverse share split.
• The Teucrium Agricultural Fund (TAGS) experienced a 39% decrease in total net assets and a 9% decrease in NAV per share in 2025.
• Annualized interest yields for CORN, SOYB, CANE, and WEAT decreased in 2025 compared to prior years.
• The total gross expense ratio for CORN and TAGS increased in 2025.
• The Hashdex Bitcoin Futures ETF (DEFI) was liquidated on January 3, 2024, following a merger, indicating a discontinued product.
• The 7RCC Spot Bitcoin and Carbon Credit Futures ETF (BTCK) had not commenced investment operations as of December 31, 2025, despite being seeded.
• The Sponsor cannot predict when current high levels of volatility in global commodity markets, exacerbated by geopolitical events, will subside.
• Prolonged periods of contango in futures markets may adversely impact the Funds' returns.
• Shareholders are required to pay U.S. federal income tax on their allocable share of the Funds' taxable income without receiving cash distributions, potentially leading to tax liabilities exceeding cash received.

Risks

• The Funds may change their investment objective, benchmark, or strategies without shareholder approval, potentially leading to losses.
• Funds generally do not distribute cash, requiring shareholders to pay taxes on allocated income and gains from other sources.
• The Funds may terminate if unable to raise sufficient capital or if the Sponsor operates at a loss for an extended period.
• There is a risk of tracking error between the price of Fund Shares, NAV, and the spot price of the underlying commodities.
• A limited number of Authorized Purchasers could lead to illiquidity if they cease participation, causing Shares to trade at a discount to NAV.
• The Funds are not subject to the protections afforded by the Investment Company Act of 1940.
• Agreements with service providers are terminable, potentially requiring renegotiation or new arrangements.
• Reliance on a small number of key individuals (Sal Gilbertie, Springer Harris, Cory Mullen-Rusin) for management creates key person risk.
• The Sponsor's quantitative trading strategy is subject to human error and computer system malfunctions, which could lead to substantial losses.
• Dependence on the integrity and performance of complex computer and communications systems of exchanges, brokers, and data providers.
• Commodity prices are highly sensitive to general economic growth, natural disasters, geopolitical events (e.g., Russia-Ukraine conflict), and technological changes.
• Cybersecurity risks, including theft, unauthorized access, and operational disruption, could lead to financial losses and reputational damage.
• The Trust may suspend or reject redemption orders under certain market conditions or for the protection of shareholders, potentially affecting redemption proceeds.
• If a minimum number of Shares is outstanding, market makers may be less willing to purchase Shares in the secondary market, limiting liquidity.
• Third parties may assert intellectual property infringement claims against the Sponsor.
• The Sponsor may have conflicts of interest due to its ability to trade for itself and its sole authority over Fund management and expense allocation.
• Volatility in commodity futures markets may lead Futures Commission Merchants (FCMs) to impose risk mitigation procedures beyond regulatory limits, impacting investment ability.
• Selling short-term Treasury Securities or cash equivalents below purchase price could result in losses.
• The Funds are not intended to be leveraged, but if the Sponsor permits it, investors could lose all or substantially all of their investment.
• Commodities' low correlation to traditional asset classes does not guarantee diversification benefits or profitability during unfavorable market periods.
• The Trust Agreement indemnifies the Trustee and Sponsor against liability (absent gross negligence or willful misconduct), potentially requiring the sale of Fund assets to cover losses.
• The impact of contango (where distant delivery prices exceed spot prices) can negatively affect returns as contracts are rolled.
• Position limits and daily price fluctuation limits set by the CFTC and exchanges can cause tracking error and limit the Funds' ability to meet investment objectives.
• The interseries limitation on liability under the Delaware Statutory Trust Act may not be upheld by courts, potentially exposing assets in one Fund to liabilities of another.
• Regulatory changes, including those from the Dodd-Frank Act and CFTC, could substantially and adversely affect the Funds.
• Illiquidity of certain commodity interests, especially individually negotiated over-the-counter contracts, could cause large losses.
• Credit risk from counterparties to over-the-counter contracts, as they are not backed by a clearing organization.
• Trading in non-U.S. markets presents risks due to less regulation, exchange controls, expropriation, increased tax burdens, and political instability.
• Uncertainty exists regarding the U.S. federal income tax treatment of bitcoin and bitcoin derivatives, which could lead to adverse consequences if challenged by the IRS.
• Shareholders may be taxed on amounts in excess of their economic income due to the Funds' tax allocation assumptions and conventions.
• The Funds may be liable for U.S. federal income tax on imputed underpayments from IRS audits, which would reduce net assets.
• Withholding tax for non-U.S. shareholders may be borne by all shareholders if the Funds cannot cause the economic cost to be borne by the specific non-U.S. shareholder.
• Specific risks for Corn, Soybean, Sugar, and Wheat Funds include weather conditions, crop disease, governmental policies, changing demand, seasonal fluctuations, and specific position limits.

Future Outlook

Global corn consumption is projected to continue growing, driven by population growth, a rising global middle class, and increased biofuel use, though future growth in agricultural production may be limited by land, infrastructure, and weather. Volatility, trading volumes, and prices in global corn, soybean, and wheat markets are expected to continue indefinitely at extreme elevated levels due to geopolitical events, with the Sponsor unable to predict when this volatility will subside. The rate of inflation in the United States remains above the stated two percent goal, despite the Federal Reserve beginning to reduce interest rates in 2024. The effect of any future regulatory changes on the Funds is unpredictable but could be substantial and adverse. The Sponsor does not intend to limit the amount of any Fund's assets, but increasing assets under management may make profitable trading more challenging. The Sponsor is evaluating the impacts of ASU 2024-03 and plans to adopt it by December 31, 2026.

Management Comments

• Management provides oversight of cybersecurity risks, ensuring alignment with regulatory requirements and industry best practices.
• Management also plays a crucial role in overseeing the implementation and effectiveness of cybersecurity measures.
• The Sponsor has no ability to discern when current high levels of volatility will subside.
• The Sponsor has determined that no reimbursement will be sought in future periods for those expenses which have been waived for the period.
• The Sponsor can elect to adjust the daily expense accruals at its discretion based on market conditions and other Fund considerations.
• Management of the Sponsor believes that, as of December 31, 2025, the internal control over financial reporting of both the Trust and each Fund that is a series of the Trust is effective.

Industry Context

StockSavvy.ai notes that global commodity markets remain highly sensitive to macroeconomic conditions, including U.S. dollar valuations, fiscal and monetary policies, and inflation expectations. Geopolitical instability, particularly the Russia-Ukraine conflict, continues to significantly amplify market volatility and impact agricultural commodity prices (corn, soybeans, wheat, sugar) due to disruptions in supply chains and global transportation. While global corn consumption is projected to grow, driven by demographic and biofuel trends, production growth faces constraints from limited productive land and infrastructure. The regulatory landscape for derivatives, shaped by the Dodd-Frank Act and CFTC rules, continues to evolve, impacting operational and compliance costs for market participants. The SEC's decision not to pursue enforcement action against StoneX, a key clearing broker, regarding the BTIG complaint, provides some clarity for a significant service provider.

Comparison to Industry Standards

• The filing notes that historically, price changes in corn have a low correlation with the S&P 500, aligning with the general industry understanding that commodities can offer diversification benefits against traditional asset classes like stocks and bonds.
• The document does not provide specific comparable companies, projects, or results to assess the Funds' performance against direct industry peers or global benchmarks beyond general commodity market trends.

Management Changes

Corporate Governance

Legal Proceedings

• A settlement agreement was entered into on April 26, 2024, and became effective on May 10, 2024, resolving all claims in the actions captioned Dale Riker v. Sal Gilbertie et al., Sal Gilbertie, et. al. v. Dale Riker, et al., and Dale Riker, et al. v. Teucrium Trading, LLC.
• Marex Capital Markets Inc. (clearing broker) was involved in a private litigation (United States District Court for the Southern District of New York, Civil Action No. 19-CV-8217) where the judge ruled in favor of Marex, awarding $1,762,266.57 plus interest and attorneys fees. Marex also received $1,402,234.32 in attorneys fees and costs.
• Marex Capital Markets Inc. settled a JAMS Arbitration related to trading losses in futures accounts.
• Marex Capital Markets Inc. had a FINRA Arbitration where the panel dismissed claims against it, and a petition to vacate the award was denied on April 22, 2024.
• Marex Capital Markets Inc. settled a private litigation (Cook County Litigation) regarding breach of contract and violation of the Illinois Wage Payment and Collections Act.
• Marex Capital Markets Inc. is involved in an Adversary Complaint where Debtors seek to enforce a pledge agreement and recover collateral; the proceeding is stayed as of April 25, 2023.
• Marex Capital Markets Inc. is a defendant in a private litigation (United States District Court for the Northern District of Illinois, Eastern Division No. 1:23-cv-14192) alleging use of plaintiff's software and trade secrets; six of eight counts were dismissed on May 2, 2024, and discovery is ongoing.
• StoneX Financial Inc. (clearing broker) is facing a civil complaint from BTIG, LLC (CGC-23-610525) alleging theft of trade secrets, which has been moved to FINRA Arbitration. StoneX also received DOJ and SEC subpoenas related to this, with the SEC concluding its investigation by recommending no enforcement action.
• StoneX Financial Inc. was fined $300,000 by an Exchange's Business Conduct Committee for failing to include unique IDs for Registered Operators on certain orders and trades from February 2018 through August 2022, and for failing to diligently supervise compliance.
• StoneX Financial Inc. was assessed a $5,000 fine on November 15, 2023, for failing to accurately report delivery notices in large trader position files for the September 2023 COMEX Aluminum futures contract.
• StoneX Financial Inc. was ordered to pay a $70,000 fine by the CME Business Conduct Committee on November 15, 2023, for submitting block trades with inaccurate execution times and failing to report them within the required period, and for inadequate supervision.
• StoneX Financial Inc. was imposed a $100,000 fine by the CME Group Clearing House Risk Committee on March 16, 2023, for violating Customer Gross Margining Technical Overview Requirements and CME Rule 980.G.
• StoneX Financial Inc. was imposed a $50,000 fine by the CME Group Clearing House Risk Committee on January 20, 2023, for violating CME Rules 930.A and 930.F.
• StoneX Financial Inc. is under formal investigation by CME Group's Market Regulation Department regarding block trades placed in September 2022, with settlement negotiations ongoing.
• StoneX Financial Inc. and StoneX Markets LLC agreed to pay a collective monetary penalty of $425,000 and disgorge $225,606.80 in profits on July 20, 2022, for engaging in improper pre-hedging and adopting a risk policy that motivated it.
• StoneX Financial Inc. was imposed a $75,000 fine by the ICE Futures US Business Conduct Committee on March 23, 2021, for failing to submit daily large trader reports and lacking proper processes for reporting large trader positions.

Related Party Transactions

• The Sponsor, Teucrium Trading, LLC, is contractually obligated to receive a management fee of 1.00% of average net assets annually for CORN, CANE, SOYB, and WEAT (TAGS has no management fee).
• A portion of the aggregate common expenses of the Funds are related to the Sponsor or related parties of principals of the Sponsor, primarily for accounting, financial reporting, regulatory compliance, and trading activities, totaling $2,135,860 in 2025.
• The Sponsor waived $195,175 in expenses for the Funds in 2025, with no reimbursement sought in future periods.
• Sal Gilbertie, Van Eck Associates Corporation, and Carl N. Miller III are the three voting or Class A members of the Sponsor, owning 46%, 49%, and 5% respectively.
• Sal Gilbertie, Springer Harris, Cory Mullen-Rusin, and Christi Powitzky are officers and/or principals of the Sponsor and its subsidiaries.

Stakeholder Impact

• Shareholders may experience losses due to declining NAVs and overall negative returns in most funds, and are required to pay taxes on allocated income without receiving cash distributions.
• Authorized Purchasers are critical for market liquidity, and their continued participation is essential for efficient trading and preventing shares from trading at significant premiums or discounts.
• Employees of the Sponsor benefit from regular cybersecurity training and a robust information security program.
• Service providers like U.S. Bank, N.A., Global Fund Services, PINE Distributors, Marex Capital Markets Inc., StoneX Financial Inc., and Wilmington Trust Company receive contractual fees for their services.
• Clearing brokers (Marex and StoneX) face ongoing legal and regulatory proceedings, which could divert resources and potentially impact their ability to service the Funds effectively.

Next Steps

• The Sponsor plans to adopt Accounting Standards Update (ASU) 2024-03 by the effective date for the 10-K for the period ending December 31, 2026.
• The Funds will continue to monitor and manage existing relationships with Futures Commission Merchants (FCMs) and seek additional FCM relationships as needed.
• The information security plan undergoes periodic reviews and updates, at least annually, to adapt to evolving threats and regulatory requirements.

Key Dates

Recommendation

The Teucrium Commodity Trust and its underlying funds have shown persistent net losses over the past three years, and the combined net assets have declined. While the rate of loss has decreased for some funds and there are signs of investor inflows into SOYB and WEAT, the overall performance remains challenged by commodity price depreciation and market volatility. The 1-for-5 reverse stock split in WEAT is also a concerning signal. For existing investors, holding might be justified if they believe in the long-term commodity thesis and the Sponsor's ability to navigate volatile markets and manage expenses. However, new investment is not strongly supported given the current financial performance and ongoing risks.

Keywords

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