Lack of rainfall in the US Midwest has pushed corn futures to a 10-month high, even though some rain is forecast for this week. Hot weather is expected to continue, and the amount of rainfall forecast — less than an inch for most of the region — is unlikely to change the prognosis for the fall harvest.
Last week the US Department of Agriculture cut its yield forecast from 166 bushels/acre to 146 bushels/acre. And every day that it doesn’t rain is another day that the crop yield forecast could diminish.
Soybeans and wheat are tagging along with corn prices, with soybean meal up more than 2% today and wheat up more than 4%. Corn prices are more than 4.5% higher today.
The Teucrium Corn Fund (NYSEMKT: CORN) is trading up 3.9% today at $49.89 in a 52-week range of $35.23-$50.69.
PowerShares DB Agriculture ETF (NYSEMKT: DBA) is up more than 1% at $29.73 in a 52-week range of $25.70-$34.21.
Two other very lightly traded funds are also up sharply. The Teucrium Soybean Fund (NYSEMKT: SOYB) posted a new high of $26.98 today and is trading now at $26.57. The previous range was $18.27-$26.86.
The Teucrium Wheat Fund (NYSEMKT: WEAT) is now trading at $24.56 in a 52-week range of $18.01-$24.68.