Various types of grains are probably one of the most important foods in the world. Some types of grains include: wheat, rice, corn, oats, soybeans or canola. The financial markets offer several ways to invest and benefit from rising grain prices. One of the easiest way to invest in grains is through the Exchange Traded Funds, though there are only a few grains ETFs on the market. Generally, grains are cheap and the grain sector is untied to economic cycles and interest rates. Investing through grain ETFs is less risky and gives a possibility to understand the price swings in the grain markets. Grains are also one of the most diverse commodities on the market. The Grains ETFs provide exposure to several types of grains. The main factors driving grain prices are long-term population growth, the demand for food products around the world and better standards of living. The grain ETFs focus on futures contracts for corn, soybeans and wheat in relatively equal proportions. Investor can sell short to profit from dropping prices. The grains ETFs can be used to diversify or stabilize a portfolio, hedge risk to certain countries dependent on grains, or even create a new investing opportunities. Before investing in the grains ETFs, investors should conduct a detailed research and analysis of risk and predictable profits connected with such ETFs.
Corn ETF is in the medium-term down -9% below S&P in 5 months. In the long-term down -73% below S&P in 11 years.
Soybeans ETF is in the medium-term down -8% in 2 months and down -12% below S&P in 5 months. In the long-term down -27% below S&P in 4 years.
Wheat ETF is in the medium-term down -15% in 6 months and down -23% in 1 year.
|Symbol||Company Name||Price||Change||Total net assets||Total expense ratio|
|CORN||Teucrium Corn Fund||18.57||-0.3%|
|GRU||AB Svensk Ekportkredit (Swedish Export Credit Corporation) ELEMENTS Linked to the MLCX Grains Index - Total Return||3.65||-1.35%|
|SOYB||Teucrium Soybean Fund||18.97||-0.52%|
|WEAT||Teucrium Wheat Fund||6.71||-0.59%|
|WEET||iPath Pure Beta Grains ETN||33.44|