Teucrium Trading, LLC, a sponsor of a suite of six single commodity ETPs that include energy and agriculture and one core agriculture commodity ETP, is pleased to announce the launch of the Teucrium Corn ClockSM, a real-time dynamic flip clock which displays each second how many bushels of corn will be required for that year just to supply the needs of the additional population up to that point in time.
In commenting on the Corn Clock which is displayed on the Teucrium website, Brandon Riker, Director – Strategic Marketing and Analysis, said, “Teucrium’s goal in establishing the Corn Clock is to visually illustrate and create awareness about how population growth can drive demand and thus impact the supply necessary to meet this demand.”
Riker said that according to the U.S. Census Bureau, about 2.44 people are added to the planet each second and each person uses, on average, about 4.85 bushels of corn per year¹. As an example, since the beginning of the year through 11:59:59 pm on February 28, 2013, the planet had added over 12.4 million people. To support the demand for corn from just these 12.4 million people, the world will need to produce about 60.3 million bushels of corn this year.
With the global population increasing by around 75 million people each year, about twice the population of California, and each person using about 4.85 bushels of corn¹, that means just to provide for that demand, the planet must produce approximately 363.8 million additional bushels of corn.
Riker additionally noted, “Based on current world-wide yield from the USDA, this would mean about 4.87 million additional acres (an area about the size of the state of New Jersey) would need to be planted to meet the growing demand. However, all land is not created equal and there are often issues, for example, with access to water and infrastructure.”²
Supply is a function of yield per acre and arable land under cultivation and although historical yield per acre for many crops including corn has increased, the yield change is not consistent year over year or ever increasing, and does decline from time to time³.
Additionally, according to a United Nations Food and Agriculture Organization report, “Much of the suitable land not yet in use is concentrated in a few countries in Latin America and sub-Saharan Africa, but many countries with growing rural populations in these areas are extremely land-scarce, and much of the potential land is suitable for growing only a few crops that are not necessarily those for which there is the highest demand. Also, much of the land not yet in use suffers from constraints (chemical, physical, endemic diseases, lack of infrastructure, etc.) that cannot be easily overcome or that it is not economically viable to do so.”²
You can view the Corn Clock and access additional educational information on the merits of investing in core agriculture commodities and Teucrium’s Corn Fund, as well as find out more about the Teucrium’s complete suite of core commodity funds, at www.teucrium.com and www.teucriumcornfund.com.
The Teucrium Family of Funds includes: the Teucrium Agricultural Fund which includes Corn, Soybeans, Wheat and Sugarcane (NYSE:TAGS); the Teucrium Corn Fund (NYSE: CORN); the Teucrium Wheat Fund (NYSE: WEAT); the Teucrium Sugar Fund (NYSE: CANE); the Teucrium Soybean Fund (NYSE: SOYB); the Teucrium Natural Gas Fund (NYSE: NAGS); the Teucrium WTI Crude Oil Fund (NYSE: CRUD).
¹Based on the United States Department of Agriculture’s (USDA) January 11, 2013 World Agricultural Supply and Demand Estimate (WASDE). http://www.fas.usda.gov/psdonline/psdQuery.aspx
³As reported per the USDA on the Nov 9, 2012 World Agriculture Supply and Demand Report (WASDE)
About Teucrium Trading, LLC
Teucrium Trading, LLC (Teucrium) is an issuer of single-commodity-focused next-generation ETPs. Teucrium designs investment vehicles that include transparency via the intraday indicative value (IIV), a publicly published valuation of the fund’s holdings provided by the NYSE, updated every 15 seconds as the ETP trades throughout the day. With today’s ever-evolving commodities markets’ landscape, Teucrium believes it has the expertise to deliver ETPs for liquid investing and hedging activities without the use of leverage. For more information, please visit: www.teucrium.com.
Each Teucrium Fund (“Fund”) is a commodity pool that will issue shares that may be purchased and sold on the NYSE Arca. The Funds are series of the Teucrium Commodity Trust, a Delaware statutory trust organized on September 11, 2009. The Funds are managed and controlled by the Sponsor, Teucrium Trading, LLC. The Sponsor is a limited liability company formed in Delaware on July 28, 2009 that is registered as a commodity pool operator (“CPO”) with the Commodities Futures Trading Commission (“CFTC”) and is a member of the National Futures Association (“NFA”).
The Funds have a limited operating history, meaning there is little performance history that might serve as a basis to evaluate an investment in the Trust. Investing in a Fund subjects an investor to the risks of the applicable commodity market, which investment could result in substantial fluctuations in the price of Fund shares. Unlike mutual funds, the Funds generally will not distribute dividends to shareholders. The Sponsor has limited experience operating commodity pools; a commodity pool is defined as an enterprise in which several individuals contribute funds in order to trade futures or futures options collectively. Investors may choose to use a Fund as a vehicle to hedge against the risk of loss and there are risks involved in hedging activities. Commodities and futures generally are volatile and are not suitable for all investors. The Funds are not mutual funds or any other type of investment company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder. For a complete description of the risks associated with the Funds, please refer to the applicable prospectus.
Shares of the Funds are not FDIC insured, may lose value and have no bank guarantee. Foreside Fund Services, LLC is the distributor for the Teucrium Funds.
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