ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Commodities Channel
  2. Analytics Firm Predicts 2023 Corn Prices Will Stay Elevated
Commodities Channel
Share

Analytics Firm Predicts 2023 Corn Prices Will Stay Elevated

Ben HernandezJan 23, 2023
2023-01-23

According to a Dairy Reporter article, analytics firm Beroe is predicting that corn prices will stay elevated in 2023, giving bullish investors reason to continue using the commodity as a prime inflation hedge or as a portfolio diversification tool.

Beroe cited the ongoing war in Ukraine as a major catalyst for corn prices. Russia’s occupation of the Black Sea continues to pose logistical challenges for Ukraine to export corn, constricting its ability to meet rising demand.

The Daily Reporter article noted that while production has increased by 11% the last five years, it has yet to catch up with demand. This, of course, only exacerbates the global food crisis the world is currently dealing with as the conflict continues.

In terms of consumption, the U.S. and China remain the top consumers of corn. The latter’s re-opening of its economy after prolonged lockdowns due to rising COVID-19 cases should also bolster demand for corn in the country.

Circling back to Ukraine, the Daily Reporter noted that it accounts for 15% of global corn exports, and as such, certain parts of the globe are seeking alternative ways to circumvent the exporter’s conflict with Russia. European farmers, for example, are opting to purchase corn from other places, including South American countries and the U.S.

All these factors should continue to fuel corn prices through 2023. As such, investors may want to look at corn as an inflation hedge, though the capital markets widely expect central banks to start scaling back rate hikes as consumer prices start to reverse course.

Get Convenient, Uncomplicated Corn Exposure

With inflation dissipating, agricultural commodities as an inflation hedge may not be the prime reason for exposure, but in terms of diversification and adding assets uncorrelated to the broad market, they still serve a place in an investor’s portfolio. Teucrium offers a variety of funds for investors looking to get agricultural commodity exposure in a convenient fashion while staying under the regulatory framework of a traditional market exchange.

Investors can also opt to invest in agricultural commodities via futures contracts. However, the time required to understand the futures market may be out of reach for investors, requiring a more convenient, uncomplicated approach.

For getting agricultural commodities exposure via corn, consider the Teucrium Corn Fund (CORN B), which tracks three futures contracts for corn that are traded on the Chicago Board of Trade, including 35% second to expire contracts, 30% third to expire contracts, and 35% December following the third to expire. The various contract exposures help the fund limit the negative effects of rolling contracts, especially during a market in contango.

For more news, information, and analysis, visit the Commodities Channel.


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X