Blueprint
Issuer
Free Writing Prospectus
Filed Pursuant to
Rule 433
Registration No.
333-223943
April 10,
2019
FWP
NOTICE
The
Teucrium Commodity Trust has filed a registration statement
(including a prospectus) with the SEC for the offering to which
this communication relates. Before you invest, you should read the
prospectus in that registration statement and other documents that
the Teucrium Commodity Trust has filed with the SEC for more
complete information about the issuer and this offering. You may
get these documents for free by visiting EDGAR on the SEC Web site
at www.sec.gov. Alternatively, a copy of the prospectus may be
obtained at http://www.teucriumcornfund.com/pdfs/corn-prospectus.pdf or
http://www.teucriumtagsfund.com/pdfs/tags-prospectus.pdf or
by calling (802) 540-0019.
On April 5, 2019,
Yahoo Finance published an interview with Sal Gilbertie, President
and Chief Executive Officer of Teucrium Trading, LLC, entitled
“Corn farmers taking a hit after epic floods and China trade
war.” A transcript of the interview is set forth
below.
Yahoo Finance's Adam Shapiro, Akiki Fujita, Brian Cheung and Sal
Gilbertie - President Teucrium Trading discuss the corn futures
market.
https://finance.yahoo.com/video/corn-farmers-taking-hit-epic-170701081.html
Adam
Shapiro: Joining us to talk about all of it is Sal
Gilbertie, he is president of Teucrium Trading. Teucrium,
correct?
Sal
Gilbertie: Teucrium, correct.
Adam
Shapiro: And what we should let people know is if
you’re watching this, you have the ETF – the Corn ETF.
I want to pull up something that’s very helpful –
it’s a chart which shows what’s happened to corn
prices, especially as there was this shift towards ethanol in
China, who was importing a lot of corn to create ethanol. But then
the price kind of craters. I mean, you can see it right here in the
monitor. When will corn prices recover and can they recover without
China buying US corn?
Chart: Bloomberg Finance L.P. as of
12/31/18.
This
is for illustrative purposes only and not indicative of any
investment. Past performance is no guarantee of future
results. The information and data contained herein do not
constitute investment advice offered by Teucrium Trading, LLC and
are provided solely for informational purposes.
For this purpose, corn commodity
values are representative of the futures (generic first corn
futures contract - ) spot continuation chart as defined by and
sourced on Bloomberg: Generic contracts, such as C 1, C 2, C 3,
...., are constructed by pasting together "rolling" contracts,
according to the pre-selected roll types on the commodity default
page. The generic contract uses the value of a particular contract
month until it "rolls" to the next month in the series. You can
access a generic contract by replacing the month/year code with the
number 1, i.e. C 1. Replacing the month/year code with the number 1
will yield the spot contract.”
Prices are
expressed in 1/100th of $1, i.e. 342 1/4 =
$3.4225
Energy Independence Act and RFS
Standards Timeline: https://www.ag.ndsu.edu/energy/biofuels/energy-briefs/history-of-ethanol-production-and-policy
Sal
Gilbertie: Well, China actually doesn’t buy much US
corn right now. They buy soybeans primarily. And that’s been
a big hit from the trade war, and that has kind of, corn has been a
victim of that. Someone said to me, corn is experiencing the
contagion of the prices. Well, China stopped buying
soybeans.
Adam
Shapiro: From us. I mean, they’re getting them from
Brazil.
Sal
Gilbertie: But they’re not getting as many from Brazil
that would make up the difference. So, they’re drawing down
their stocks. So, people know they’ll come back to us
eventually. There will be a trade deal that will include ags in a
very large way.
Adam
Shapiro: But how does that hit corn?
Sal
Gilbertie: Well, they’re all related. It’s
animal protein. It’s animal feed. The number one use for corn
in the world is to feed animals. And so it hit corn – both
soybeans and wheat hit corn. Cheap wheat was coming out of Russia,
and soybeans really were hit hard by the trade embargo, or the
tariffs, it’s not an embargo and that has pulled corn down.
Some people say as much as $0.30 a bushel, which is about
8%
Akiko Fujita: So, if China isn’t
the biggest market, where are you seeing the biggest growth? And
what’s the potential for prices to push higher if some kind
of deal is reached?
Sal
Gilbertie: When a deal is reached, because China needs food.
They cannot exist without buying food from the US, tariffs or no
tariffs, what will happen is soybeans will come back into vogue
meaning there is about half a billion bushels of soybeans that
China will buy that they’re short on now to this point in the
year. And that will have an effect on corn, because corn and
soybean share acres. The big story is ethanol. China is moving to
ethanol – that chart’s really appropriate that you put
up. Because when the US went to E-10 so 10% ethanol in our gasoline
– it doubled the price of corn. If you look at that chart
closely
Adam
Shapiro: Can we pull that chart up again? It shows it really
well. Our producer Yvette created this for us, and it shows the
spike.
Sal
Gilbertie: That’s a great chart. And that – if
you take the spikes out and look at the flatline of the trading,
pre-ethanol it was about $1.75 to $2 a bushel. Post–ethanol,
it was exactly double. About $3.50 to $4 a bushel. Those spikes are
from droughts. And the reason you spike is because demand rises
almost every single year for ags, So, when there is a drought, you
have a problem and you spike. The key here is if China goes to
E-10. We doubled the price of rural corn by going to E-10. China is
about a third of our market. It won’t create the same impact.
There will be an enormous impact on corn that no one is talking
about. It’s nine months away.
Brian Cheung: So, Sal, obviously trade
factors a lot into ag commodities pricing, but that seems to be a
story, as you illustrate, not just for corn but for a number of
other commodities as well. Are there other driving factors beyond,
also, droughts that kind of play into it? How is domestic
consumption looking for corn and also other
commodities?
Sal
Gilbertie: Global consumption of corn is actually rising
about 4%. Global production of corn is rising about 2%. So,
you’ve got actually demand outstripping the supply and
growth. And supplies of corn are going to drop globally 10% based
on last USDA estimates from year to year. So, you’ve got a
tightening balance sheet, which is not a bearish factor. Now
you’ve got the trade war and the floods that are basically
causing this contagion, if you will.
Adam
Shapiro: Real quick, I mean, just today, the ETF is trading
down slightly. Is there a threat that because of the soybean
tariffs, that we put more crop land in production to grow corn and
that could depress corn prices going forward?
Sal
Gilbertie: Most farmer believe they will plant more corn
than soybeans because there are so many soybeans in inventory. But
it’s a normal cycle. It’s a normal
cycle.
Akiko Fujita: Ok, Sal appreciate your
time today. Sal Gilbertie joining us here at the
desk.