10-Q: Teucrium Commodity Trust Reports Q2 2026 Results

Teucrium Commodity Trust filed its Form 10-Q for the period ended June 30, 2026, detailing financial performance across its various commodity and bitcoin-linked funds, including the new BTCK ETF.

Summary

• Teucrium Commodity Trust (the Trust) reported its financial results for the quarter and six months ended June 30, 2026.
• The Trust, which comprises six series including Teucrium Corn Fund (CORN), Teucrium Sugar Fund (CANE), Teucrium Soybean Fund (SOYB), Teucrium Wheat Fund (WEAT), Teucrium Agricultural Fund (TAGS), and the newly launched 7RCC Spot Bitcoin and Carbon Credit Futures ETF (BTCK), saw significant growth in total net assets.
• The combined net assets of the Trust reached $562,112,560 as of June 30, 2026, a substantial increase from $213,588,976 as of December 31, 2025.
• The BTCK ETF commenced operations on June 3, 2026, adding a new dimension to the Trust's offerings.
• Performance across the individual funds varied, with some experiencing significant gains in net assets and NAV per share, while others saw decreases due to market volatility in commodity futures.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this filing as neutral to slightly positive, reflecting a period of significant asset growth and operational expansion, particularly with the launch of the BTCK ETF, balanced against market volatility impacting commodity futures performance.

Positives

• Significant growth in combined net assets of the Trust, increasing from $213.6 million to $562.1 million.
• Successful launch and commencement of operations for the 7RCC Spot Bitcoin and Carbon Credit Futures ETF (BTCK) on June 3, 2026.
• Teucrium Soybean Fund (SOYB) showed strong performance with an 81% increase in total net assets year-over-year and a 11.52% total return for the six months ended June 30, 2026.
• Teucrium Wheat Fund (WEAT) also demonstrated a positive total return of 10.60% for the six months ended June 30, 2026.
• Interest income earned on cash and cash equivalents increased across most funds due to higher average net assets and interest rates.

Negatives

• The Teucrium Corn Fund (CORN) experienced a decrease in NAV per share by 5% year-over-year and a 44% decrease from the previous quarter.
• The Teucrium Sugar Fund (CANE) saw a decrease in NAV per share by 10% year-over-year.
• The Teucrium Wheat Fund (WEAT) experienced a decrease in NAV per share by 0.01% year-over-year and a 12% decrease from the previous quarter.
• The 7RCC Spot Bitcoin and Carbon Credit Futures ETF (BTCK) experienced a net decrease in NAV per share of $2.19, resulting in a -8.76% total return for its initial period of operations.
• Market volatility, geopolitical events, and commodity price fluctuations significantly impacted the performance of commodity futures contracts across several funds.

Risks

• Geopolitical instability in the Middle East and ongoing conflicts, such as those involving Russia and Ukraine, are noted as potential sources of volatility in commodity markets.
• The Trust relies heavily on a small number of key personnel from its sponsor, Teucrium Trading, LLC; the departure of these individuals could adversely affect fund management.
• The lack of full insurance and limited shareholder recourse against service providers, including the Bitcoin Custodian, exposes the Fund and its shareholders to the risk of loss of bitcoin.
• The Bitcoin Custodian's liability is limited in various ways, potentially leaving the Fund exposed to losses not fully covered by insurance or capital reserves.
• The value of Fund shares may not accurately track the changes in the benchmark, and benchmark changes may not closely correlate with spot market prices.
• The Funds are subject to margin calls, and adverse price changes could lead to margin requirements exceeding initial deposits.
• Regulatory changes in the futures and commodities markets could materially alter investment strategies or the ability to implement them.
• The introduction of new and more restrictive position limits by regulatory bodies could limit the Funds' ability to establish or maintain positions, potentially impacting their investment objectives.

Future Outlook

The filing does not contain specific forward-looking statements or guidance beyond the general investment objectives of each fund and the market outlook for commodities, which is subject to geopolitical events, weather patterns, and global economic conditions.

Management Comments

• Management attributes the year-over-year increase in total net assets for CORN to a combination of commodity price appreciation and investor inflows driven by geopolitical events.
• Management notes that the increase in interest and other income across funds is due to higher average net assets and interest rates.
• Management states that the Sponsor has the ability to elect to pay certain expenses on behalf of the Funds or waive the management fee, and this election is subject to change at the Sponsor's discretion.
• Management believes that the structure of the Funds and the nature of their expenses allow for a potential reduction in the total expense ratio as total net assets grow.

Industry Context

StockSavvy.ai notes that the filing reflects the ongoing volatility in commodity markets, influenced by geopolitical tensions and macroeconomic factors. The launch of the BTCK ETF also highlights the increasing investor interest in diversified commodity and digital asset exposure.

Legal Proceedings

• A settlement agreement was entered into on April 26, 2024, and became effective on May 10, 2024, resolving claims raised in specific legal actions involving Teucrium Trading, LLC, Salvatore Gilbertie, and Dale and Barbara Riker.
• Van Eck Associates Corporation replaced Dale Riker as a Class A member of the Sponsor on May 10, 2024.

Related Party Transactions

• The Sponsor, Teucrium Trading, LLC, receives management fees from the Funds.
• The Sponsor pays for routine operational, administrative, and other ordinary expenses of the Funds from these management fees.
• Certain aggregate expenses common to all Teucrium Funds are allocated by the Sponsor to the respective Funds.
• A portion of these aggregate common expenses relate to services provided by the Sponsor or its principals, primarily for accounting, financial reporting, regulatory compliance, and trading activities.

Stakeholder Impact

• Shareholders of the Teucrium Commodity Trust and its series funds are exposed to market risks associated with commodity futures and bitcoin prices.
• The limited liability of service providers, including the Bitcoin Custodian, may impact the recourse available to shareholders in case of losses.
• The reliance on key personnel at the Sponsor could impact the stability of fund management for shareholders.
• Geopolitical events and market volatility can affect the value of investments, impacting shareholder returns.

Next Steps

• Continue to manage funds in accordance with their respective investment objectives and benchmarks.
• Monitor market conditions, geopolitical events, and commodity prices for potential impacts on fund performance.
• Evaluate and potentially adjust expense accruals at the Sponsor's discretion based on market conditions.
• The Sponsor will continue to oversee the purchase and sale of Shares by Authorized Purchasers and manage the Funds' investments.

Key Dates

Recommendation

The filing presents a mixed financial picture. While the Trust has seen significant asset growth and successfully launched a new ETF, the performance of several commodity funds has been negatively impacted by market volatility and geopolitical events. The neutral tracking of benchmarks is noted, but the overall market risks and the limited recourse in case of custodian issues suggest a cautious approach. Therefore, a 'hold' recommendation is appropriate pending clearer market stabilization and sustained positive performance across all funds.

Keywords

Teucrium Commodity Trust, Form 10-Q, Corn Futures, Soybean Futures, Wheat Futures, Sugar Futures, Bitcoin ETF, Commodity Trading