Teucrium Trading LLC, a sponsor of a suite of six single commodity ETPs that include energy and agriculture and one core agriculture commodity ETP, today announced the launch of what is expected to be the first in a series of three-minute educational videos designed to create awareness about how population growth is affecting the global supply and demand for grains and other essential commodities.
Entitled, “Understanding the Global Demand for Corn, Wheat and Soybeans,” the video, which can be viewed at www.teucrium.com, clearly demonstrates the interrelationship between population growth, supply and demand in a global context.
“Teucrium’s goal for this video was to create an increased awareness about how population growth can drive demand for these core grains and the factors that impact the planet’s ability to produce the supply necessary to meet this demand,” Brandon Riker, Director – Strategic Marketing and Analysis at Teucrium, said, in commenting on the video.
“Agricultural supplies are greatly affected by weather and the ability to find arable land for production,” Riker said. “The short 3 minute video explores some of the demand and supply factors for these agricultural crops and how the world’s production strives to keep pace.”
According to Riker, a growing global middle class which consumes, on average, more calories and energy per capita than populations had in the past, as well as a world-wide population that is increasing at over two people per second continues to put demand pressure on the core agricultural commodities – corn, soybeans, wheat and sugar.
Supply is a function of yield per acre and arable land under cultivation, he said, and although historical yield per acre for many crops including corn has increased, the change in yield is not consistent year over year or ever increasing, and does decline from time to time.
The U.S. Census Bureau reported recently that about 2.44 people are added to the planet each second¹ and each person uses, on average, about 5 bushels of corn, 2 bushels of soybeans and 3 bushels of wheat per year. This means that approximately 13.5 million additional acres of land would need to be cultivated (about twice the size of Massachusetts) producing the combined 722 million bushels of corn, soybeans and wheat needed just to supply the global population growth estimated for a full year².
“Given these and other statistics associated with the anticipated growth in global population,” Riker said, “it should come as no surprise that the United Nations is taking a close look at what increasing demand not only means in the context of limited natural resources, but the farmland available for growing the corn, wheat, soybeans and sugar necessary to sustain that growth.”
A recent United Nations Food and Agriculture Organization report, stated, “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.”³
Additional educational information about on the merits of investing in core agriculture commodities, as well as Teucrium’s complete suite of core commodity funds, can be found at www.teucrium.com.
About Teucrium Trading LLC
Teucrium Trading, LLC is the sponsor of a suite of six single commodity ETPs that include energy and agriculture and one core agriculture commodity ETP.
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). For more information, please visit: www.teucrium.com.
¹U.S. Census Bureau, World POPClock Projection http://www.census.gov/population/popclockworld.html
²Based 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
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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