CANE.NYSE ARCATeucrium Commodity Trust
10-Q: Teucrium Commodity Trust Reports Q1 2025 Results: Mixed Performance Across Agricultural Funds
Sentiment:
Quarterly Report
Teucrium Commodity Trust's Q1 2025 results reveal a mixed performance across its agricultural funds, with varying impacts from commodity price fluctuations and market dynamics.
Worse than expectedThe results were worse than expected due to a combination of depreciation of commodity prices and investor out-flows which was driven by excess supply estimates, and mandates for plant-based renewable fuels contributing to weakness.
Summary
- Teucrium Commodity Trust, a Delaware statutory trust, released its Form 10-Q for the quarter ended March 31, 2025.
- The trust consists of five series: Teucrium Corn Fund (CORN), Teucrium Sugar Fund (CANE), Teucrium Soybean Fund (SOYB), Teucrium Wheat Fund (WEAT), and Teucrium Agricultural Fund (TAGS).
- The investment objective of each fund is to reflect the daily changes in the specified commodity market for future delivery as measured by a benchmark.
- CORN's net assets decreased by 26% year-over-year, with a NAV per share of $18.53.
- SOYB's net assets decreased by 25% year-over-year, with a NAV per share of $21.33.
- CANE's net assets decreased by 33% year-over-year, with a NAV per share of $12.22.
- WEAT's net assets decreased by 27% year-over-year, with a NAV per share of $4.68.
- TAGS' net assets decreased by 30% year-over-year, with a NAV per share of $25.25.
- The report includes combined statements of assets and liabilities, schedules of investments, statements of operations, statements of changes in net assets, and statements of cash flows for the trust and each fund.
- The report also includes certifications from the Principal Executive Officer and Principal Financial Officer regarding the accuracy and compliance of the report.
Sentiment
Score: 5
Explanation: The sentiment is neutral, reflecting a mixed performance across the funds with both positive and negative aspects. The report is factual and does not express a strong positive or negative outlook.
Positives
- CANE experienced a net increase in net asset value per share of $0.81 for the three months ended March 31, 2025.
- TAGS experienced a net increase in net asset value per share of $0.15 for the three months ended March 31, 2025.
Negatives
- CORN experienced a net decrease in net asset value per share of $0.23 for the three months ended March 31, 2025.
- SOYB experienced a net decrease in net asset value per share of $0.14 for the three months ended March 31, 2025.
- WEAT experienced a net decrease in net asset value per share of $0.15 for the three months ended March 31, 2025.
Risks
- The report mentions risks related to natural disasters, environmental disasters, geopolitical instability, military hostilities, and widespread disease, which can negatively impact commodity prices and the value of the funds.
- The report also mentions the risk of the changes in the price of the Funds Shares will not accurately track the changes in the Benchmark, and that changes in the Benchmark will not closely correlate with changes in the price of the commodity or cryptocurrency on the spot market.
- The report also mentions the risk of the Funds being subject to position limits and accountability levels, which could limit the ability to issue new creation units or reinvest income in additional commodity futures contracts.
Future Outlook
The report provides a market outlook for each commodity, but does not include specific forward-looking financial guidance for the funds.
Industry Context
The announcement provides insight into the performance of commodity-based ETFs, specifically those focused on agricultural commodities. The performance of these funds is influenced by factors such as global supply and demand, weather patterns, and geopolitical events.
Comparison to Industry Standards
- Comparable companies to Teucrium include Invesco DB Agriculture Fund (DBA), which is a broad agriculture ETF, and single-commodity ETFs from other providers.
- Teucrium's performance can be compared to these funds to assess its relative performance in tracking commodity prices.
- The expense ratios of Teucrium's funds can be compared to industry averages for commodity ETFs to assess their cost-effectiveness.
- The tracking error (the difference between the fund's performance and the benchmark's performance) can be compared to industry benchmarks to assess the fund's efficiency in tracking its target commodity.
Management Changes
| Role | Previous Person | New Person | Effective Date | Reason |
|---|---|---|---|---|
| Class A member of the Sponsor | Dale Riker | Van Eck Associates Corporation | 2024-05-10 | Settlement agreement |
Legal Proceedings
- A settlement agreement (Agreement), by and among Teucrium Trading, Salvatore Gilbertie, Carl Miller III, Cory Mullen-Rusin, Steve Kahler, and Dale and Barbara Riker, was entered into as of April 26, 2024 and became effective on May 10, 2024.
- The Agreement resolves all of the claims raised in the actions captioned Dale Riker v. Sal Gilbertie et al., C.A. 656794/2020 (N.Y. Supreme Court), Sal Gilbertie, et. al. v. Dale Riker, et al., C.A. 2020-1018-LWW (Del. Ch.) and Dale Riker, et al. v. Teucrium Trading, LLC, C.A. 2022-1030-LWW (Del. Ch.).
Related Party Transactions
- The report discloses management fees paid to the Sponsor, Teucrium Trading, LLC, and related party transactions.
Stakeholder Impact
- Shareholders are impacted by the performance of the funds, which is influenced by commodity prices and market dynamics.
- Authorized Purchasers are impacted by the creation and redemption processes, which are subject to certain minimum requirements.
- The Sponsor is impacted by the management fees it receives and its responsibility for managing the funds.
- Service providers, such as the Trustee, Administrator, and Marketing Agent, are impacted by the fees they receive for their services.
Key Dates
| Date | Description |
|---|---|
| 2009-09-11 | Teucrium Commodity Trust organized as a Delaware statutory trust. |
| 2010-06-07 | Initial Form S-1 for CORN declared effective by the SEC. |
| 2010-06-08 | Four Creation Baskets for CORN were issued representing 200,000 shares and $5,000,000. |
| 2010-06-09 | CORN began trading on the New York Stock Exchange (NYSE) Arca. |
| 2011-06-13 | Initial Forms S-1 for CANE, SOYB, and WEAT were declared effective by the SEC. |
| 2011-09-16 | Two Creation Baskets were issued for each Fund, representing 100,000 shares and $2,500,000, for CANE, SOYB, and WEAT. |
| 2011-09-19 | CANE, SOYB, and WEAT started trading on the NYSE Arca. |
| 2012-02-10 | Form S-1 for TAGS was declared effective by the SEC. |
| 2012-03-27 | Six Creation Baskets for TAGS were issued representing 300,000 shares and $15,000,000. |
| 2012-03-28 | TAGS began trading on the NYSE Arca. |
| 2022-03-09 | Current registration statement for WEAT was declared effective. |
| 2022-04-07 | Current registration statements for CORN, CANE, SOYB, and TAGS were declared effective by the SEC. |
| 2023-10-30 | Agreement and Plan of Merger and Liquidation dated as of October 30, 2023 (the Plan of Merger). |
| 2024-01-03 | The Merger closed on January 3, 2024 (the Closing Date). |
| 2025-03-31 | End of the quarterly period covered by the report. |
| 2025-05-09 | Total Number of Outstanding Shares as of May 9, 2025 |
| 2025-05-12 | Date of certifications by the Principal Executive Officer and Principal Financial Officer. |
Keywords
Teucrium, Commodity, Trust, Agricultural, Funds, Corn, Soybean, Sugar, Wheat, Futures, NAV, Financials, Investments
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