v3.26.1
Note 5 - Derivative Instruments and Hedging Activities
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 5 – Derivative Instruments and Hedging Activities

 

In the normal course of business, the Funds utilize derivative contracts in connection with its proprietary trading activities. Investments in derivative contracts are subject to additional risks that can result in a loss of all or part of an investment. The Funds’ derivative activities and exposure to derivative contracts are classified by the following primary underlying risks: interest rate, credit, commodity price, and equity price risks. In addition to its primary underlying risks, the Funds are also subject to additional counterparty risk due to the inability of its counterparties to meet the terms of their contracts. For the three months ended March 31, 2026 and year ended December 31, 2025, the Funds invested only in commodity and cryptocurrency futures contracts specifically related to each Fund.

 

Futures Contracts

 

The Funds are subject to commodity and cryptocurrency price risk in the normal course of pursuing their investment objectives. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

 

The purchase and sale of futures contracts requires margin deposits with an FCM. Subsequent payments (variation margin) are made or received by each Fund each day, depending on the daily fluctuations in the value of the contract, and are recorded as unrealized gains or losses by each Fund. Futures contracts may reduce the Funds’ exposure to counterparty risk since futures contracts are exchange-traded; and the exchange’s clearinghouse, as the counterparty to all exchange-traded futures, guarantees the futures against default.

 

The Commodity Exchange Act requires an FCM to segregate all customer transactions and assets from the FCM’s proprietary activities. A customer’s cash and other equity deposited with an FCM are considered commingled with all other customer funds subject to the FCM’s segregation requirements. In the event of an FCM’s insolvency, recovery may be limited to each Fund’s pro rata share of segregated customer funds available. It is possible that the recovery amount could be less than the total of cash and other equity deposited.

 

The following table discloses information about offsetting assets and liabilities presented in the statements of assets and liabilities to enable users of these financial statements to evaluate the effect or potential effect of netting arrangements for recognized assets and liabilities. These recognized assets and liabilities are presented as defined in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) No. 2011-11 “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities” and subsequently clarified in FASB ASU 2013-01 “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.”

 

The following table also identifies the fair value amounts of derivative instruments included in the statements of assets and liabilities as derivative contracts, categorized by primary underlying risk, and held by the FCMs, Marex, and StoneX as of March 31, 2026, and December 31, 2025.

 

*The amount of collateral presented in Collateral, Due from Broker, is limited to the liability for the futures contracts and accordingly does not include the excess collateral pledged.

 

Offsetting of Financial Assets and Derivative Assets as of March 31, 2026

 
  

(i)

  

(ii)

  

(iii) = (i-ii)

  

(iv)

  

(v) = (iii)-(iv)

 
              

Gross Amount Not Offset in the Statement of Assets and Liabilities

     

Description

 

Gross Amount of Recognized Assets

  

Gross Amount Offset in the Statement of Assets and Liabilities

  

Net Amount Presented in the Statement of Assets and Liabilities

  

Futures Contracts Available for Offset

  

Collateral, Due to Broker

  

Net Amount

 

Commodity Price

                        

Teucrium Corn Fund: Corn futures contracts

 $130,097  $-  $130,097  $130,097  $-  $- 

Teucrium Soybean Fund: Soybean futures contracts

  1,825,673   -   1,825,673   20,562   -   1,805,111 

Teucrium Sugar Fund: Sugar futures contracts

  1,607,856   -   1,607,856   1,607,856   -   - 

Teucrium Wheat Fund: Wheat futures contracts

  13,094,464   -   13,094,464   13,094,464   -   - 

Teucrium Commodity Trust Total

 $16,658,090  $-  $16,658,090  $14,852,979  $-  $1,805,111 

 

Offsetting of Financial Liabilities and Derivative Liabilities as of March 31, 2026

 
  

(i)

  

(ii)

  

(iii) = (i-ii)

  

(iv)

  

(v) = (iii)-(iv)

 
              

Gross Amount Not Offset in the Statement of Assets and Liabilities

     

Description

 

Gross Amount of Recognized Liabilities

  

Gross Amount Offset in the Statement of Assets and Liabilities

  

Net Amount Presented in the Statement of Assets and Liabilities

  

Futures Contracts Available for Offset

  

Collateral, Due from Broker*

  

Net Amount

 

Commodity Price

                        

Teucrium Corn Fund: Corn futures contracts

 $1,809,947  $-  $1,809,947  $130,097  $1,679,850  $- 

Teucrium Soybean Fund: Soybean futures contracts

  20,562   -   20,562   20,562   -   - 

Teucrium Commodity Trust Total

 $1,830,509  $-  $1,830,509  $150,659  $1,679,850  $- 

 

Offsetting of Financial Assets and Derivative Assets as of December 31, 2025

 
  

(i)

  

(ii)

  

(iii) = (i-ii)

  

(iv)

  

(v) = (iii)-(iv)

 
              

Gross Amount Not Offset in the Statement of Assets and Liabilities

     

Description

 

Gross Amount of Recognized Assets

  

Gross Amount Offset in the Statement of Assets and Liabilities

  

Net Amount Presented in the Statement of Assets and Liabilities

  

Futures Contracts Available for Offset

  

Collateral, Due to Broker

  

Net Amount

 

Commodity Price

                        

Teucrium Corn Fund: Corn futures contracts

 $50,255  $-  $50,255  $50,255  $-  $- 

 

Offsetting of Financial Liabilities and Derivative Liabilities as of December 31, 2025

 
  

(i)

  

(ii)

  

(iii) = (i-ii)

  

(iv)

  

(v) = (iii)-(iv)

 
              

Gross Amount Not Offset in the Statement of Assets and Liabilities

     

Description

 

Gross Amount of Recognized Liabilities

  

Gross Amount Offset in the Statement of Assets and Liabilities

  

Net Amount Presented in the Statement of Assets and Liabilities

  

Futures Contracts Available for Offset

  

Collateral, Due from Broker*

  

Net Amount

 

Commodity Price

                        

Teucrium Corn Fund: Corn futures contracts

 $170,785  $-  $170,785  $50,255  $120,530  $- 

Teucrium Soybean Fund: Soybean futures contracts

  2,185,227   -   2,185,227   -   2,185,227   - 

Teucrium Sugar Fund: Sugar futures contracts

  1,150,617   -   1,150,617   -   1,150,617   - 

Teucrium Wheat Fund: Wheat futures contracts

  7,314,828   -   7,314,828   -   7,314,828   - 

Teucrium Commodity Trust Total

 $10,821,457  $-  $10,821,457  $50,255  $10,771,202  $- 

 

The following is a summary of realized and unrealized gains (losses) of the derivative instruments utilized by the Trust:

 

Three months ended March 31, 2026 

 

  

Realized Gain (Loss) on Commodity Futures Contracts

  

Net Change in Unrealized Appreciation (Depreciation) on Commodity Futures Contracts

 

Commodity Price

        

Corn futures contracts

 $659,685  $(1,559,320)

Soybean futures contracts

  362,172   3,990,338 

Sugar futures contracts

  (832,556)  2,758,473 

Wheat futures contracts

  4,259,468   20,409,292 

Total commodity futures contracts

 $4,448,769  $25,598,783 

 

Three months ended March 31, 2025 

 

  

Realized Gain (Loss) on Commodity Futures Contracts

  

Net Change in Unrealized Appreciation (Depreciation) on Commodity Futures Contracts

 

Commodity Price and Cryptocurrency Price

        

Corn futures contracts

 $(3,964,335) $(1,596,170)

Soybean futures contracts

  (2,632,854)  596,685 

Sugar futures contracts

  (482,314)  1,873,597 

Wheat futures contracts

  (10,037,305)  (8,958,463)

Total commodity and cryptocurrency futures contracts

 $(17,194,951) $(7,969,968)

 

Volume of Derivative Activities

 

The average notional market value categorized by primary underlying risk for the futures contracts held for the three months ended March 31, 2026 and for the three months ended March 31, 2025.

 

  

CORN

  

SOYB

  

CANE

  

WEAT

  

TRUST

 

Three Months Ended March 31, 2026

  133,379,613   44,961,250   32,797,184   186,837,854   397,975,901 

Three Months Ended March 31, 2025

  53,720,483   26,755,671   12,313,668   105,489,813   198,279,635