2 unchanged sentences
TEUCRIUM COMMODITY TRUST
−Removed: Combined Statements of Assets and Liabilities at June 30, 2021 (Unaudited) and December 31, 2020
−Removed: Combined Schedule of Investments at June 30, 2021 (Unaudited) and December 31, 2020
−Removed: Combined Statements of Operations (Unaudited) for the three and six months ended June 30, 2021 and 2020
−Removed: Combined Statements of Changes in Net Assets (Unaudited) for the six months ended June 30, 2021 and 2020
−Removed: Combined Statements of Cash Flows (Unaudited) for the six months ended June 30, 2021 and 2020
+Added: Combined Statements of Assets and Liabilities at September 30, 2021 (Unaudited) and December 31, 2020
+Added: Combined Schedule of Investments at September 30, 2021 (Unaudited) and December 31, 2020
+Added: Combined Statements of Operations (Unaudited) for the three and nine months ended September 30, 2021 and 2020
+Added: Combined Statements of Changes in Net Assets (Unaudited) for the nine months ended September 30, 2021 and 2020
+Added: Combined Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2021 and 2020
Notes to Combined Financial Statements
TEUCRIUM CORN FUND
−Removed: Statements of Assets and Liabilities at June 30, 2021 (Unaudited) and December 31, 2020
−Removed: Schedule of Investments at June 30, 2021 (Unaudited) and December 31, 2020
−Removed: Statements of Operations (Unaudited) for the three and six months ended June 30, 2021 and 2020
−Removed: Statements of Changes in Net Assets (Unaudited) for the six months ended June 30, 2021 and 2020
−Removed: Statements of Cash Flows (Unaudited) for the six months ended June 30, 2021 and 2020
+Added: Statements of Assets and Liabilities at September 30, 2021 (Unaudited) and December 31, 2020
+Added: Schedule of Investments at September 30, 2021 (Unaudited) and December 31, 2020
+Added: Statements of Operations (Unaudited) for the three and nine months ended September 30, 2021 and 2020
+Added: Statements of Changes in Net Assets (Unaudited) for the nine months ended September 30, 2021 and 2020
+Added: Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2021 and 2020
Notes to Financial Statements
TEUCRIUM SOYBEAN FUND
−Removed: Statements of Assets and Liabilities at June 30, 2021 (Unaudited) and December 31, 2020
−Removed: Schedule of Investments at June 30, 2021 (Unaudited) and December 31, 2020
−Removed: Statements of Operations (Unaudited) for the three and six months ended June 30, 2021 and 2020
−Removed: Statements of Changes in Net Assets (Unaudited) for the six months ended June 30, 2021 and 2020
−Removed: Statements of Cash Flows (Unaudited) for the six months ended June 30, 2021 and 2020
+Added: Statements of Assets and Liabilities at September 30, 2021 (Unaudited) and December 31, 2020
+Added: Schedule of Investments at September 30, 2021 (Unaudited) and December 31, 2020
+Added: Statements of Operations (Unaudited) for the three and nine months ended September 30, 2021 and 2020
+Added: Statements of Changes in Net Assets (Unaudited) for the nine months ended September 30, 2021 and 2020
+Added: Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2021 and 2020
Notes to Financial Statements
TEUCRIUM SUGAR FUND
−Removed: Statements of Assets and Liabilities at June 30, 2021 (Unaudited) and December 31, 2020
−Removed: Schedule of Investments at June 30, 2021 (Unaudited) and December 31, 2020
−Removed: Statements of Operations (Unaudited) for the three and six months ended June 30, 2021 and 2020
−Removed: Statements of Changes in Net Assets (Unaudited) for the six months ended June 30, 2021 and 2020
−Removed: Statements of Cash Flows (Unaudited) for the six months ended June 30, 2021 and 2020
+Added: Statements of Assets and Liabilities at September 30, 2021 (Unaudited) and December 31, 2020
+Added: Schedule of Investments at September 30, 2021 (Unaudited) and December 31, 2020
+Added: Statements of Operations (Unaudited) for the three and nine months ended September 30, 2021 and 2020
+Added: Statements of Changes in Net Assets (Unaudited) for the nine months ended September 30, 2021 and 2020
+Added: Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2021 and 2020
Notes to Financial Statements
TEUCRIUM WHEAT FUND
−Removed: Statements of Assets and Liabilities at June 30, 2021 (Unaudited) and December 31, 2020
−Removed: Schedule of Investments at June 30,, 2021 (Unaudited) and December 31, 2020
−Removed: Statements of Operations (Unaudited) for the three and six months ended June 30, 2021 and 2020
−Removed: Statements of Changes in Net Assets (Unaudited) for the six months ended June 30, 2021 and 2020
−Removed: Statements of Cash Flows (Unaudited) for the six months ended June 30, 2021 and 2020
+Added: Statements of Assets and Liabilities at September 30, 2021 (Unaudited) and December 31, 2020
+Added: Schedule of Investments at September 30,, 2021 (Unaudited) and December 31, 2020
+Added: Statements of Operations (Unaudited) for the three and nine months ended September 30, 2021 and 2020
+Added: Statements of Changes in Net Assets (Unaudited) for the nine months ended September 30, 2021 and 2020
+Added: Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2021 and 2020
Notes to Financial Statements
TEUCRIUM AGRICULTURAL FUND
−Removed: Statements of Assets and Liabilities at June 30, 2021 (Unaudited) and December 31, 2020
−Removed: Schedule of Investments at June 30, 2021 (Unaudited) and December 31, 2020
−Removed: Statements of Operations (Unaudited) for the three and six months ended June 30, 2021 and 2020
−Removed: Statements of Changes in Net Assets (Unaudited) for the six months ended June 30, 2021 and 2020
−Removed: Statements of Cash Flows (Unaudited) for the six months ended June 30, 2021 and 2020
+Added: Statements of Assets and Liabilities at September 30, 2021 (Unaudited) and December 31, 2020
+Added: Schedule of Investments at September 30, 2021 (Unaudited) and December 31, 2020
+Added: Statements of Operations (Unaudited) for the three and nine months ended September 30, 2021 and 2020
+Added: Statements of Changes in Net Assets (Unaudited) for the nine months ended September 30, 2021 and 2020
+Added: Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2021 and 2020
Notes to Financial Statements
1 unchanged sentence
COMBINED STATEMENTS OF ASSETS AND LIABILITIES
+Added: September 30,
+Added: December 31 ,
Cash and cash equivalents
7 unchanged sentences
Total equity in trading accounts
+Added: $ 274,715,638
+Added: $ 352,127,842
Management fee payable to Sponsor
12 unchanged sentences
COMBINED SCHEDULE OF INVESTMENTS
−Removed: June 30, 2021
+Added: September 30, 2021
Percentage of
5 unchanged sentences
Commercial Paper
−Removed: Brookfield Infrastructure Holdings Inc.
+Added: Brookfield Infrastructure Holdings (Canada) Inc.
0.178% (cost:
$12,496,844 due:
−Removed: Brookfield Infrastructure Holdings Inc.
+Added: General Motors Financial Company, Inc.
0.150% (cost:
$4,998,166 due:
−Removed: Brookfield Infrastructure Holdings Inc.
+Added: General Motors Financial Company, Inc.
0.172% (cost:
$9,996,980 due:
−Removed: Canadian Natural Resources Limited 0.140% (cost:
−Removed: $9,998,990 due:
−Removed: FMC Corporation 0.200% (cost:
−Removed: $4,499,300 due:
−Removed: General Motors Financial Company 0.230% (cost:
−Removed: $5,996,741 due:
−Removed: General Motors Financial Company 0.230% (cost:
−Removed: $8,995,000 due:
−Removed: General Motors Financial Company 0.170% (cost:
−Removed: $4,997,899 due:
−Removed: Harley-Davidson Financial Services Inc 0.170% (cost:
−Removed: $9,995,751 due:
−Removed: Harley-Davidson Financial Services Inc 0.160% (cost:
+Added: General Motors Financial Company, Inc.
+Added: 0.170% (cost:
$4,998,630 due:
−Removed: Harley-Davidson Financial Services Inc 0.150% (cost:
+Added: Glencore Funding LLC 0.150% (cost:
$4,998,210 due:
+Added: Harley-Davidson Financial Services, Inc.
0.150% (cost:
$8,997,300 due:
+Added: Harley-Davidson Financial Services, Inc.
0.160% (cost:
$7,497,033 due:
+Added: Harley-Davidson Financial Services, Inc.
0.150% (cost:
4 unchanged sentences
$4,998,340 due:
+Added: National Fuel Gas Company 0.200% (cost:
+Added: $9,998,832 due:
0.274% (cost:
13 unchanged sentences
United States corn futures contracts
−Removed: CBOT corn futures SEP21 (2,092 contracts)
+Added: CBOT corn futures MAY22 (1,312 contracts)
CBOT corn futures DEC22 (1,624 contracts)
1 unchanged sentence
CBOT soybean futures NOV22 (268 contracts)
−Removed: CBOT soybean futures JAN22 (307 contacts)
−Removed: CBOT soybean futures NOV22 (381 contacts)
United States sugar futures contracts
−Removed: ICE sugar futures MAR22 (382 contracts)
ICE sugar futures MAY22 (414 contracts)
+Added: ICE sugar futures JUL22 (368 contracts)
ICE sugar futures MAR23 (439 contracts)
United States wheat futures contracts
−Removed: CBOT wheat futures SEP21 (889 contracts)
+Added: CBOT wheat futures MAR22 (695 contracts)
+Added: CBOT wheat futures MAY22 (593 contracts)
CBOT wheat futures DEC22 (708 contracts)
6 unchanged sentences
United States corn futures contracts
−Removed: CBOT corn futures DEC22 (2,383 contracts)
−Removed: United States wheat futures contracts
−Removed: CBOT wheat futures DEC22 (861 contracts)
+Added: CBOT corn futures MAR22 (1,544 contracts)
+Added: United States soybean futures contracts
+Added: CBOT soybean futures JAN22 (261 contracts)
+Added: CBOT soybean futures MAR22 (222 contracts)
Total commodity futures contracts
113 unchanged sentences
COMBINED STATEMENTS OF OPERATIONS
−Removed: Three months ended
−Removed: Three months ended
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Realized and unrealized gain (loss) on trading of commodity futures contracts:
8 unchanged sentences
( 7,969,705 )
−Removed: ( 19,241,528 )
Management fees
7 unchanged sentences
Expenses waived by the Sponsor
−Removed: Total expenses, net
−Removed: Net income (loss)
( 1,650,854 )
+Added: Total expenses, net
+Added: Net (loss) income
$ ( 9,343,629 )
2 unchanged sentences
COMBINED STATEMENTS OF CHANGES IN NET ASSETS
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: Net income (loss)
−Removed: $ ( 22,071,982 )
+Added: September 30,
+Added: September 30,
Capital transactions
8 unchanged sentences
Net change in net assets
+Added: ( 43,068,445 )
Net assets, beginning of period
5 unchanged sentences
COMBINED STATEMENTS OF CASH FLOWS
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
Cash flows from operating activities:
−Removed: Net income (loss)
+Added: Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
+Added: Net change in unrealized appreciation/(depreciation) on commodity futures contracts
( 14,297,584 )
−Removed: Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
−Removed: Net change in unrealized depreciation on commodity futures contracts
Changes in operating assets and liabilities:
3 unchanged sentences
Interest receivable
−Removed: Receivable for investments sold
Due to broker
17 unchanged sentences
Net change in cash and cash equivalents
+Added: ( 55,078,121 )
Cash and cash equivalents beginning of period
4 unchanged sentences
NOTES TO COMBINED FINANCIAL STATEMENTS
−Removed: June 30, 2021
+Added: September 30, 2021
Note 1 – Organization and Operation
28 unchanged sentences
It is suggested that these interim financial statements be read in conjunction with the audited financial statements and related notes included in the Trust’s Annual Report on Form 10-K, as well as the most recent Form S-1 filing, as applicable.
−Removed: The operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021.
+Added: The operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021.
Subject to the terms of the Trust Agreement, Teucrium Trading, LLC in its capacity as the Sponsor of the Trust may terminate a Fund at any time, regardless of whether the Fund has incurred losses, including, for instance, if it determines that the Fund’s aggregate net assets in relation to its operating expenses make the continued operation of the Fund unreasonable or imprudent.
43 unchanged sentences
A summary of these expenses is included below:
+Added: Three month ended
+Added: Three month ended
+Added: Nine month ended
+Added: Nine month ended
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Amount Recognized for Custody Services
20 unchanged sentences
Unrealized appreciation or depreciation on commodity futures contracts are reflected in the combined statements of operations as the difference between the original contract amount and the fair market value as of the last business day of the year or as of the last date of the financial statements.
−Removed: Beginning on August 21, 2019, brokerage commission expenses were recognized on a per-trade basis.
−Removed: The half-turn is recognized as an unrealized loss on the combined statements of operations for contracts that have been purchased since the change in recognition, and a full turn is recognized as a realized loss on the combined statements of operations when a contract is sold.
Changes in the appreciation or depreciation between periods are reflected in the combined statements of operations.
10 unchanged sentences
Prior to the change, brokerage commissions on all open commodity futures contracts were accrued on the trade date and on a full-turn basis.
−Removed: The below table shows the amounts included on the statements of operations as total brokerage commissions paid inclusive of unrealized loss for the three and six months ended June 30, 2021 and 2020.
−Removed: CORN SOYB CANE WEAT TAGS TRUST
−Removed: Three Months Ended June 30, 2021 $ 41,225
−Removed: Three Months Ended June 30, 2020
−Removed: Six Months Ended June 30, 2021
−Removed: Six Months Ended June 30, 2020
+Added: The below table shows the amounts included on the statements of operations as total brokerage commissions paid inclusive of unrealized loss for the three and nine months ended September 30, 2021 and 2020.
+Added: Three months ended September 30, 2021
+Added: Three months ended September 30, 2020
+Added: Nine months ended September 30, 2021
+Added: Nine months ended September 30, 2020
The Trust is organized and will be operated as a Delaware statutory trust.
13 unchanged sentences
De-recognition of a tax benefit previously recognized results in the Funds recording a tax liability that reduces net assets.
−Removed: Based on their analysis, the Funds have determined that they have not incurred any liability for unrecognized tax benefits as of June 30, 2021 and for the years ended December 31, 2020, 2019, and 2018.
+Added: Based on their analysis, the Funds have determined that they have not incurred any liability for unrecognized tax benefits as of September 30, 2021 and for the years ended December 31, 2020, 2019, and 2018.
However, the Funds’ conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, ongoing analysis of and changes to tax laws, regulations, and interpretations thereof.
The Funds recognize interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed.
−Removed: No interest expense or penalties have been recognized as of and for the three and six months ended June 30, 2021 and 2020.
+Added: No interest expense or penalties have been recognized as of and for the three and nine months ended September 30, 2021 and 2020.
The Funds may be subject to potential examination by U.S.
30 unchanged sentences
The Sponsor may invest a portion of the cash held by the broker in short term Treasury Bills as collateral for open futures contracts, which is classified as a cash equivalent and is not FDIC insured.
+Added: September 30,
Money Market Funds
1 unchanged sentence
Commercial Paper
−Removed: Total cash and cash equivalents as presented on the combined Statement of Assets and Liabilities
+Added: Total cash and cash equivalents as presented on the combined Statements of Assets and Liabilities
$ 254,300,174
42 unchanged sentences
Such expenses are primarily included as distribution and marketing fees in the financial statements of each Fund.
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Recognized Related Party Transactions
4 unchanged sentences
The Sponsor has determined that there will be no recovery sought for the amounts below in any future period.
−Removed: Three months ended June 30, 2021
−Removed: Three months ended June 30, 2020
−Removed: Six months ended June 30, 2021
−Removed: Six months ended June 30, 2020
+Added: Three months ended September 30, 2021
+Added: Three months ended September 30, 2020
+Added: Nine months ended September 30, 2021
+Added: Nine months ended September 30, 2020
Use of Estimates
The preparation of financial statements in conformity with U.S.
−Removed: GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of the revenue and expenses during the reporting period.
+Added: GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of the revenue and expenses during the reporting period.
Actual results could differ from those estimates.
26 unchanged sentences
When such a situation exists on a quarter close, the Sponsor will calculate the NAV on a particular day using the Level 1 valuation but will later recalculate the NAV for the impacted Fund based upon the valuation inputs from these alternative verifiable sources (Level 2 or Level 3) and will report such NAV in its applicable financial statements and reports.
−Removed: On June 30, 2021 and December 31, 2020, in the opinion of the Trust, the reported value at the close of the market for each commodity contract fairly reflected the value of the futures and no alternative valuations were required, except for the Sep21 CBOT corn futures and the Dec21 CBOT corn futures, which settled in a “limit up” condition on June 30, 2021.
−Removed: Therefore, the Trust and CORN have used alternative verifiable sources to value these contracts on June 30, 2021 and the financial statements of CORN and TAGS, due to the NAV adjustment for the Underlying Fund, have been adjusted accordingly.
−Removed: The adjustment in CORN has resulted in a $711,275 increase in the unrealized change in commodity futures contracts in excess of reported CBOT values and have classified these as a Level 2 asset for the period ended June 30, 2021.
−Removed: The determination is made as of the settlement of the futures contracts on the last day of trading for the reporting period.
+Added: On September 30, 2021 and December 31, 2020, in the opinion of the Trust, the reported value at the close of the market for each commodity contract fairly reflected the value of the futures and no alternative valuations were required.
+Added: For the quarter ended June 30, 2021, Corn Futures Contracts for the Sep21 CBOT corn futures and the Dec21 CBOT corn futures, settled in a “limit up” condition.
+Added: Accordingly, the Trust, CORN and TAGS classified these as level 2 assets.
+Added: The financial statements of CORN including TAGS, due to the NAV adjustment for the Underlying CORN holdings, were adjusted accordingly.
+Added: The adjustment resulted in an increase in the unrealized change in commodity futures contracts in excess of reported CBOT values of $ 711,275 for CORN.
+Added: The Corn futures contracts transferred back to a Level 1 asset for the period ended September 30, 2021.
For the quarter ended March 31, 2021, Corn Futures Contracts for the Jul21 CBOT corn futures, Sep21 CBOT corn futures, Dec21 CBOT corn futures, Jul21 CBOT soybean futures, and the Nov21 CBOT soybean futures, settled in a “limit up” condition.
2 unchanged sentences
The adjustment resulted in an increase in the unrealized change in commodity futures contracts in excess of reported CBOT values of $ 3,371,513 for CORN and $ 279,750 for SOYB.
−Removed: The Soybean futures contracts transferred back to a Level 1 asset for the period ended June 30, 2021, and the Sept21 and Dec21 corn futures contracts remained a Level 2 asset as described above.
+Added: The Soybean futures contracts transferred back to a Level 1 asset for the period ended June 30, 2021, and the Sep21 and Dec21 corn futures contracts remained a Level 2 asset as described above.
For the quarter ended June 30, 2020, the Dec21 CBOT Wheat Futures Contracts traded on the CBOT did not, in the opinion of the Trust and WEAT, trade in an actively traded futures market as defined in the policy of the Trust and WEAT for the entire period during which they were held.
11 unchanged sentences
The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-05:
+Added: “Leases (Topic 842).” Under the amended guidance, a lessor should classify and account for a lease with variable lease payments that don’t depend on an index or a rate as an operating lease if the lease would’ve been classified as a sales-type lease or a direct financing lease in accordance with the lease classification guidance in Topic 842 and the lessor would’ve otherwise recognized a day-one loss.
+Added: The amendment was adopted early for the quarter ended September 30, 2021;
+Added: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Funds.
+Added: The FASB issued ASU 2020-10:
“Codification Improvements.” The amendment improves the disclosure guidance in appropriate Disclosure Sections, without resulting in changes to current GAAP.
−Removed: The amendment is effective for annual periods beginning after December 15, 2020.
−Removed: The Sponsor is evaluating the impacts, but the amendment is not expected to have a material impact on the financial statements of the Trust or the Funds.
+Added: The amendment was adopted for the quarter ended March 31, 2021;
+Added: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Funds.
The FASB issued ASU 2020-02:
4 unchanged sentences
The amendment updates and adds language to ASU 2016-02.
−Removed: The amendments were adopted for the quarter ended March 31, 2020;
−Removed: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Funds.
+Added: The amendments were adopted for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Funds.
The FASB issued ASU 2020-01:
1 unchanged sentence
The amendments clarify the treatment of transactions that require a company to apply or discontinue the equity method of accounting.
−Removed: The amendments were adopted early for the quarter ended March 31, 2020;
−Removed: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Funds.
+Added: The amendments were adopted early for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Funds.
The FASB issued ASU 2019-01:
18 unchanged sentences
The amendments were adopted for the quarter ended September 30, 2020;
−Removed: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Funds.
Note 4 – Fair Value Measurements
The Trust’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in the Trust’s significant accounting policies in Note 3.
−Removed: The following table presents information about the Trust’s assets and liabilities measured at fair value as of June 30, 2021 and December 31, 2020:
−Removed: June 30, 2021
+Added: The following table presents information about the Trust’s assets and liabilities measured at fair value as of September 30, 2021 and December 31, 2020:
+Added: September 30, 2021
Balance as of
−Removed: June 30, 2021
+Added: September 30,
Cash Equivalents
9 unchanged sentences
Balance as of
−Removed: June 30, 2021
+Added: September 30,
Commodity Futures Contracts
Corn futures contracts
−Removed: Wheat futures contracts
+Added: Soybean futures contracts
December 31, 2020
10 unchanged sentences
$ 255,993,581
−Removed: For the three and six months ended June 30, 2021 and year ended December 31, 2020, the Funds did not have any significant transfers between any of the levels of the fair value hierarchy except for:
−Removed: the Sep21 CBOT corn futures and the Dec 21 CBOT corn futures which were reflected as a Level 2 investment for the period ended June 30, 2021 due to a “limit up” situation;
−Removed: the July21 CBOT corn futures, Sep21 CBOT corn futures, Dec21 CBOT corn futures, Jul21 CBOT soybean futures, and the Nov21 CBOT soybean futures, which were reflected as a Level 2 investment for the period ended March 31, 2021 due to a “limit up” situation.
−Removed: The Soybean futures contracts transferred back to a Level 1 asset for the period ended June 30, 2021, and the Sep21 and Dec21 corn futures contracts remained a Level 2 asset.
−Removed: The Dec 21 CBOT Wheat contracts held by WEAT, which were reflected as a Level 2 investment for the period ended June 30, 2020 due to the quarterly average daily volume for the contract and which were transferred back to a Level 1 asset for the period ended September 30, 2020.
+Added: For the period ended September 30, 2021 and year ended December 31, 2020, the Funds did not have any significant transfers between any of the levels of the fair value hierarchy.
+Added: The determination is made as of the settlement of the futures contracts on the last day of trading for the reporting period.
+Added: In making the determination of a Level 1 or Level 2 transfer, the Fund considers the average volume of the specific underlying futures contracts traded on the relevant exchange for the periods being reported.
+Added: For the quarter ended June 30, 2021, Corn Futures Contracts for the Sep21 CBOT corn futures and the Dec21 CBOT corn futures, settled in a “limit up” condition.
+Added: Accordingly, the Trust, CORN and TAGS classified these as level 2 assets.
+Added: The financial statements of CORN including TAGS, due to the NAV adjustment for the Underlying CORN holdings, were adjusted accordingly.
+Added: The adjustment resulted in an increase in the unrealized change in commodity futures contracts in excess of reported CBOT values of $ 711,275 for CORN.
+Added: The Corn futures contracts transferred back to a Level 1 asset for the period ended September 30, 2021.
+Added: For the quarter ended March 31, 2021, Corn Futures Contracts for the Jul21 CBOT corn futures, Sep21 CBOT corn futures, Dec21 CBOT corn futures, Jul21 CBOT soybean futures, and the Nov21 CBOT soybean futures, settled in a “limit up” condition.
+Added: Accordingly, the Trust, CORN, and SOYB classified these as Level 2 assets.
+Added: The financial statements of these funds including TAGS, due to the NAV adjustment for each of these Underlying Funds, were adjusted accordingly.
+Added: The adjustment resulted in an increase in the unrealized change in commodity futures contracts in excess of reported CBOT values of $ 3,371,513 for CORN and $ 279,750 for SOYB.
+Added: The Soybean futures contracts transferred back to a Level 1 asset for the period ended June 30, 2021, and the Sep21 and Dec21 corn futures contracts remained a Level 2 asset as described above.
+Added: For the quarter ended June 30, 2020, the Dec21 CBOT Wheat Futures Contracts traded on the CBOT did not, in the opinion of the Trust and WEAT, trade in an actively traded futures market as defined in the policy of the Trust and WEAT for the entire period during which they were held.
+Added: Accordingly, the Trust and WEAT classified these as a Level 2 asset for the period ended June 30, 2020 due to the quarterly average daily volume for the contract.
+Added: These Wheat contracts transferred back to a Level 1 asset for the period ended September 30, 2020.
See the Fair Value - Definition and Hierarchy section in Note 3 above for an explanation of the transfers into and out of each level of the fair value hierarchy.
5 unchanged sentences
In addition to its primary underlying risks, the Funds are also subject to additional counterparty risk due to inability of its counterparties to meet the terms of their contracts.
−Removed: For the three and six months ended June 30, 2021 and year ended December 31, 2020, the Funds invested only in commodity futures contracts specifically related to each Fund.
+Added: For the three and nine months ended September 30, 2021 and year ended December 31, 2020, the Funds invested only in commodity futures contracts specifically related to each Fund.
Futures Contracts
14 unchanged sentences
Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.”
−Removed: The following table also identifies the fair value amounts of derivative instruments included in the combined statements of assets and liabilities as derivative contracts, categorized by primary underlying risk and held by the FCM, E D & F Man as of June 30, 2021 and December 31, 2020.
−Removed: Offsetting of Financial Assets and Derivative Assets as of June 30, 2021
+Added: The following table also identifies the fair value amounts of derivative instruments included in the combined statements of assets and liabilities as derivative contracts, categorized by primary underlying risk and held by the FCM, E D & F Man as of September 30, 2021 and December 31, 2020.
+Added: *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.
+Added: Offsetting of Financial Assets and Derivative Assets as of September 30, 2021
(iii) = (i)-(ii)
11 unchanged sentences
Wheat futures contracts
−Removed: Offsetting of Financial Liabilities and Derivative Liabilities as of June 30, 2021
+Added: Offsetting of Financial Liabilities and Derivative Liabilities as of September 30, 2021
(iii) = (i)-(ii)
8 unchanged sentences
Corn futures contracts
−Removed: Wheat futures contracts
+Added: Soybean futures contracts
Offsetting of Financial Assets and Derivative Assets as of December 31, 2020
13 unchanged sentences
The following is a summary of realized and unrealized gains (losses) of the derivative instruments utilized by the Trust:
−Removed: Three months ended June 30, 2021
+Added: Three months ended September 30, 2021
Realized Gain on Commodity Futures Contracts
4 unchanged sentences
Soybean futures contracts
+Added: ( 7,754,543 )
Sugar futures contracts
1 unchanged sentence
Total commodity futures contracts
−Removed: Three months ended June 30, 2020
−Removed: Realized Loss on Commodity Futures Contracts
−Removed: Net Change in Unrealized Appreciation (Depreciation) on Commodity Futures Contracts
+Added: $ ( 23,501,922 )
+Added: Three months ended September 30, 2020
+Added: Realized Gain on Commodity Futures Contracts
+Added: Net Change in Unrealized Appreciation on Commodity Futures Contracts
Commodity Price
Corn futures contracts
−Removed: $ ( 5,200,091 )
Soybean futures contracts
Sugar futures contracts
−Removed: ( 1,239,596 )
Wheat futures contracts
−Removed: ( 5,884,890 )
Total commodity futures contracts
−Removed: $ ( 7,587,383 )
−Removed: Six months ended June 30, 2021
+Added: Nine months ended September 30, 2021
Realized Gain on Commodity Futures Contracts
10 unchanged sentences
$ 109,828,706
−Removed: Six months ended June 30, 2020
+Added: $ ( 34,410,727 )
+Added: Nine months ended September 30, 2020
Realized (Loss) Gain on Commodity Futures Contracts
−Removed: Net Change in Unrealized Depreciation on Commodity Futures Contracts
+Added: Net Change in Unrealized Appreciation (Depreciation) on Commodity Futures Contracts
Commodity Price
1 unchanged sentence
$ ( 6,379,024 )
−Removed: $ ( 2,792,631 )
Soybean futures contracts
2 unchanged sentences
Wheat futures contracts
−Removed: ( 6,884,216 )
Total commodity futures contracts
$ ( 4,142,159 )
−Removed: $ ( 10,953,308 )
Volume of Derivative Activities
−Removed: The average notional market value categorized by primary underlying risk for the futures contracts held was $ 376.9 million and $ 365.7 million for the three and six months ended June 30, 2021, respectively, and $ 161.5 million and $ 154.9 million for the three and six months ended June 30, 2020, respectively.
+Added: The average notional market value categorized by primary underlying risk for the futures contracts held was $ 281.7 million and $ 334.0 million for the three and nine months ended September 30, 2021, respectively, and $ 277.2 million and $ 193.5 million for the three and nine months ended September 30, 2020, respectively.
Note 6 - Organizational and Offering Costs
3 unchanged sentences
The following are the net assets and shares outstanding of each Fund that is a series of the Trust and, thus, in total, comprise the combined net assets of the Trust:
−Removed: June 30, 2021
−Removed: Outstanding Shares
+Added: September 30, 2021
Teucrium Corn Fund
10 unchanged sentences
December 31, 2020
−Removed: Outstanding Shares
Teucrium Corn Fund
11 unchanged sentences
Note 8 – Subsequent Events
−Removed: Management has evaluated the financial statements for the quarter-ended June 30, 2021 for subsequent events through the date of this filing and noted no material events requiring either recognition through the date of the filing or disclosure herein for the Trust and Funds other than those noted below:
−Removed: The continued uncertainty over the path of COVID-19 may continue to be highly disruptive to economies and markets.
+Added: Management has evaluated the financial statements for the quarter-ended September 30, 2021 for subsequent events through the date of this filing and noted no material events requiring either recognition through the date of the filing or disclosure herein for the Trust and Funds other than those noted below:
+Added: The continued uncertainty of COVID-19 may continue to be highly disruptive to economies and markets.
The impact of COVID-19 to the Trust and the Funds is described in more detail in Part II of this 10-Q.
−Removed: The total net assets of the Fund decreased by $ 38,633,498 , or 22 %, for the period June 30, 2021 to August 6, 2021.
−Removed: This was driven by a 3 % decrease in the NAV per share and a 19 % decrease in the shares outstanding.
Nothing to report
2 unchanged sentences
Nothing to report
+Added: Nothing to report
TEUCRIUM CORN FUND
STATEMENTS OF ASSETS AND LIABILITIES
+Added: September 30,
Cash and cash equivalents
24 unchanged sentences
SCHEDULE OF INVESTMENTS
−Removed: June 30, 2021
+Added: September 30, 2021
Percentage of
1 unchanged sentence
Money market funds
−Removed: First American Government Obligations Fund - Class X (cost:
+Added: First American Governemnt Obligations Fund - Class X (cost $8,952,627)
Goldman Sachs Financial Square Government Fund - Institutional Class (cost:
Total money market funds (cost:
−Removed: Principal Amount
Commercial Paper
−Removed: Brookfield Infrastructure Holdings (Canada) Inc.
−Removed: 0.240% (cost:
−Removed: $9,998,200 due 07/21/2021)
−Removed: Brookfield Infrastructure Holdings (Canada) Inc.
−Removed: 0.216% (cost:
−Removed: $4,999,161 due 07/21/2021)
−Removed: Canadian Natural Resources Limited 0.140% (cost:
−Removed: $4,999,495 due 07/26/2021)
−Removed: FMC Corporation 0.200% (cost:
−Removed: $2,499,611 due 07/12/2021)
General Motors Financial Company, Inc.
7 unchanged sentences
$2,499,315 due 11/10/2021)
+Added: Glencore Funding LLC 0.150% (cost:
+Added: $2,499,105 due 10/06/2021)
Harley-Davidson Financial Services, Inc.
9 unchanged sentences
$7,497,875 due 10/19/2021)
−Removed: 0.210% (cost:
+Added: National Fuel Gas Company 0.200% (cost:
$2,499,708 due 10/08/2021)
11 unchanged sentences
United States corn futures contracts
−Removed: CBOT corn futures SEP21 (2,092 contracts)
+Added: CBOT corn futures MAY22 (1,312 contracts)
CBOT corn futures DEC22 (1,624 contracts)
Total commodity futures contracts
−Removed: $ 117,034,600
Percentage of
3 unchanged sentences
United States corn futures contracts
−Removed: CBOT corn futures DEC22 (2,383 contracts)
+Added: CBOT corn futures MAR22 (1,544 contracts)
The accompanying notes are an integral part of these financial statements.
8 unchanged sentences
Total money market funds (cost:
−Removed: Principal Amount
Commercial Paper
55 unchanged sentences
Total commodity futures contracts
−Removed: $ 138,278,913
The accompanying notes are an integral part of these financial statements.
1 unchanged sentence
STATEMENTS OF OPERATIONS
−Removed: Three months ended
−Removed: Three months ended
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Realized and unrealized gain (loss) on trading of commodity futures contracts:
1 unchanged sentence
$ ( 6,379,024 )
−Removed: $ ( 6,779,194 )
Net change in unrealized (depreciation)/appreciation on commodity futures contracts
1 unchanged sentence
( 18,263,441 )
−Removed: ( 2,792,631 )
Interest income
−Removed: Total income (loss)
+Added: Total (loss) income
( 10,548,273 )
5 unchanged sentences
General and administrative expenses
+Added: Other expenses
Total expenses
1 unchanged sentence
Total expenses, net
−Removed: Net income (loss)
−Removed: $ ( 1,504,603 )
+Added: Net (loss) income
$ ( 11,185,315 )
−Removed: Net income (loss) per share
−Removed: Net income (loss) per weighted average share
+Added: Net (loss) income per share
+Added: Net (loss) income per weighted average share
Weighted average shares outstanding
2 unchanged sentences
STATEMENTS OF CHANGES IN NET ASSETS
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: Net income (loss)
−Removed: $ ( 10,418,764 )
+Added: September 30,
+Added: September 30,
Capital transactions
6 unchanged sentences
Net change in net assets
+Added: ( 17,893,142 )
Net assets, beginning of period
2 unchanged sentences
$ 120,396,395
+Added: $ 152,842,949
Net asset value per share at beginning of period
5 unchanged sentences
STATEMENTS OF CASH FLOWS
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
Cash flows from operating activities:
−Removed: Net income (loss)
+Added: Adjustments to reconcile net income to net cash provided by (used in) operating activities:
+Added: Net change in unrealized depreciation/(appreciation) on commodity futures contracts
( 7,945,108 )
−Removed: Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
−Removed: Net change in unrealized depreciation on commodity futures contracts
Changes in operating assets and liabilities:
19 unchanged sentences
Net change in cash and cash equivalents
+Added: ( 23,132,531 )
Cash and cash equivalents, beginning of period
1 unchanged sentence
$ 115,048,530
+Added: $ 147,245,827
The accompanying notes are an integral part of these financial statements.
NOTES TO FINANCIAL STATEMENTS
−Removed: June 30, 2021
+Added: September 30, 2021
Note 1 – Organization and Operation
25 unchanged sentences
It is suggested that these interim financial statements be read in conjunction with the financial statements and related notes included in the Trust’s Annual Report on Form 10-K, as well as the most recent Form S-1 filing, as applicable.
−Removed: The operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021.
+Added: The operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021.
Subject to the terms of the Trust Agreement, Teucrium Trading, LLC, in its capacity as the Sponsor (“Sponsor”), may terminate a Fund at any time, regardless of whether the Fund has incurred losses, including, for instance, if it determines that the Fund’s aggregate net assets in relation to its operating expenses make the continued operation of the Fund unreasonable or imprudent.
43 unchanged sentences
A summary of these expenses is included below:
−Removed: Three months ended
−Removed: June 30, 2021
−Removed: Three months ended
−Removed: June 30, 2020
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: Six months ended
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Amount Recognized for Custody Services
23 unchanged sentences
Accretion on these investments are recognized using the effective interest method in U.S.
−Removed: dollars and included in interest income on the combined statements of operations.
+Added: dollars and included in interest income on the statements of operations.
Brokerage Commissions
1 unchanged sentence
Prior to the change, brokerage commissions on all open commodity futures contracts were accrued on the trade date and on a full-turn basis.
−Removed: The below table shows the amounts included on the statements of operations as total brokerage commissions paid inclusive of unrealized loss for the three and six months ended June 30, 2021.
−Removed: Three Months Ended June 30, 2021
−Removed: Three Months Ended June 30, 2020
−Removed: Six Months Ended June 30, 2021
−Removed: Six Months Ended June 30, 2020
+Added: The below table shows the amounts included on the statements of operations as total brokerage commissions paid inclusive of unrealized loss for the three and nine months ended September 30, 2021.
+Added: Three months ended September 30, 2021
+Added: Three months ended September 30, 2020
+Added: Nine months ended September 30, 2021
+Added: Nine months ended September 30, 2020
For federal income tax purposes, the Fund will be treated as a publicly traded partnership.
12 unchanged sentences
De-recognition of a tax benefit previously recognized results in the Fund recording a tax liability that reduces net assets.
−Removed: Based on its analysis, the Fund has determined that it has not incurred any liability for unrecognized tax benefits as of June 30, 2021 and for the years ended December 31, 2020, 2019, and 2018.
+Added: Based on its analysis, the Fund has determined that it has not incurred any liability for unrecognized tax benefits as of September 30, 2021 and for the years ended December 31, 2020, 2019, and 2018.
However, the Fund’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, ongoing analysis of and changes to tax laws, regulations, and interpretations thereof.
The Fund recognizes interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed.
−Removed: No interest expense or penalties have been recognized as of and for the three and six months ended June 30, 2021 and 2020.
+Added: No interest expense or penalties have been recognized as of and for the three and nine months ended September 30, 2021 and 2020.
The Fund may be subject to potential examination by U.S.
9 unchanged sentences
Authorized Purchasers may redeem shares from the Fund only in blocks of 25,000 shares called “Redemption Baskets.” The amount of the redemption proceeds for a Redemption Basket will be equal to the NAV of the shares in the Redemption Basket determined as of 4:00 p.m.
−Removed: (EST) on the day the order to redeem the basket is received is good order.
+Added: (EST) on the day the order to redeem the basket is received in good order.
The Fund receives or pays the proceeds from shares sold or redeemed within three business days after the trade date of the purchase or redemption.
14 unchanged sentences
The Sponsor may invest a portion of the cash held by the broker in short term Treasury Bills as collateral for open futures contracts, which is classified as a cash equivalent and is not FDIC insured.
+Added: September 30,
Money Market Funds
53 unchanged sentences
Such expenses are primarily recorded as distribution and marketing fees in the financial statements of each Fund.
−Removed: Three months ended
−Removed: June 30, 2021
−Removed: Three months ended
−Removed: June 30, 2020
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: Six months ended
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Recognized Related Party Transactions
4 unchanged sentences
The Sponsor has determined that there will be no recovery sought for the amounts below in any future period:
−Removed: Three months ended June 30, 2021
−Removed: Three months ended June 30, 2020
−Removed: Six months ended June 30, 2021
−Removed: Six months ended June 30, 2020
+Added: Three months ended September 30, 2021
+Added: Three months ended September 30, 2020
+Added: Nine months ended September 30, 2021
+Added: Nine months ended September 30, 2020
Use of Estimates
29 unchanged sentences
When such a situation exists on a quarter close, the Sponsor will calculate the Net Asset Value (“NAV”) on a particular day using the Level 1 valuation but will later recalculate the NAV for the impacted Fund based upon the valuation inputs from these alternative verifiable sources (Level 2 or Level 3) and will report such NAV in its applicable financial statements and reports.
−Removed: On June 30, 2021 and December 31, 2020, in the opinion of the Trust and the Fund, the reported value at the close of the market for each commodity contract fairly reflected the value of the futures and no alternative valuations were required, except for the Sep21 CBOT corn futures and the Dec21 CBOT corn futures, which settled in a “limit up” condition on June 30, 2021.
−Removed: Therefore, the Trust and CORN have used alternative verifiable sources to value these contracts on June 30, 2021 and the financial statements of CORN have been adjusted accordingly.
−Removed: The adjustment in CORN has resulted in a $711,275 increase in the unrealized change in commodity futures contracts in excess of reported CBOT values and have classified these as a Level 2 asset for the period ended June 30, 2021.
+Added: On September 30, 2021 and December 31, 2020, in the opinion of the Trust and the Fund, the reported value at the close of the market for each commodity contract fairly reflected the value of the futures and no alternative valuations were required.
The determination is made as of the settlement of the futures contracts on the last day of trading for the reporting period.
+Added: In making the determination of a Level 1 or Level 2 transfer, the Fund considers the average volume of the specific underlying futures contracts traded on the relevant exchange for the periods being reported.
+Added: For the quarter ended June 30, 2021, Corn Futures Contracts for the Sep21 CBOT corn futures and the Dec21 CBOT corn futures, settled in a “limit up” condition.
+Added: Accordingly, the Trust and CORN classified these as level 2 assets.
+Added: The financial statements of CORN were adjusted accordingly.
+Added: The adjustment resulted in an increase in the unrealized change in commodity futures contracts in excess of reported CBOT values of $711,275 for CORN.
+Added: The Corn futures contracts transferred back to a Level 1 asset for the period ended September 30, 2021.
For the quarter ended March 31, 2021, Corn Futures Contracts for the Jul21 CBOT corn futures, Sep21 CBOT corn futures, and Dec21 CBOT corn futures settled in a “limit up” condition.
2 unchanged sentences
The adjustment resulted in an increase in the unrealized change in commodity futures contracts in excess of reported CBOT values of $3,371,513.
−Removed: The Sep21 and Dec21 corn futures contracts remained a Level 2 asset for the period ended June 30, 2021 as described above.
+Added: The Jul21 corn futures contracts transferred back to a Level 1 asset, and the Sep21 and Dec21 corn futures contracts remained a Level 2 asset as described above for the period ended June 30, 2021.
The Fund records its derivative activities at fair value.
10 unchanged sentences
The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-05:
+Added: “Leases (Topic 842).” Under the amended guidance, a lessor should classify and account for a lease with variable lease payments that don’t depend on an index or a rate as an operating lease if the lease would’ve been classified as a sales-type lease or a direct financing lease in accordance with the lease classification guidance in Topic 842 and the lessor would’ve otherwise recognized a day-one loss.
+Added: The amendment was adopted early for the quarter ended September 30, 2021;
+Added: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The FASB issued ASU 2020-10:
“Codification Improvements.” The amendment improves the disclosure guidance in appropriate Disclosure Sections, without resulting in changes to current GAAP.
The amendment is effective for annual periods beginning after December 15, 2020.
−Removed: The Sponsor is evaluating the impacts, but the amendment is not expected to have a material impact on the financial statements of the Trust or the Fund.
−Removed: The FASB issued Accounting Standards Update (“ASU”) 2020-02:
+Added: The amendment was adopted for the quarter ended March 31, 2021;
+Added: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The FASB issued 2020-02:
“Financial Instruments Credit Losses (Topic 326) and Leases (Topic 842):
3 unchanged sentences
The amendment updates and adds language to ASU 2016-02.
−Removed: The amendments were adopted for the quarter ended March 31, 2020;
−Removed: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The amendments were adopted for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
The FASB issued ASU 2020-01:
1 unchanged sentence
The amendments clarify the treatment of transactions that require a company to apply or discontinue the equity method of accounting.
−Removed: The amendments were adopted early for the quarter ended March 31, 2020;
−Removed: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The amendments were adopted early for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
The FASB issued ASU 2019-01:
21 unchanged sentences
The Fund’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in the Fund’s significant accounting policies in Note 3.
−Removed: The following table presents information about the Fund’s assets and liabilities measured at fair value as of June 30, 2021 and December 31, 2020:
−Removed: June 30, 2021
+Added: The following table presents information about the Fund’s assets and liabilities measured at fair value as of September 30, 2021 and December 31, 2020:
+Added: September 30, 2021
Balance as of
−Removed: June 30, 2021
+Added: September 30,
Cash Equivalents
1 unchanged sentence
Corn futures contracts
−Removed: $ 107,202,623
Balance as of
−Removed: June 30, 2021
+Added: September 30,
Commodity Futures Contracts
1 unchanged sentence
December 31, 2020
−Removed: Balance as of December 31, 2020
+Added: Balance as of
Cash Equivalents
3 unchanged sentences
$ 118,125,459
−Removed: For the three months ended June 30, 2021 and year ended December 31, 2020, the Fund did not have any significant transfers between any of the levels of the fair value hierarchy, except for the:
+Added: For the period ended September 30, 2021 and year ended December 31, 2020, the Fund did not have any significant transfers between any of the levels of the fair value hierarchy.
Sep21 and Dec21 CBOT corn futures contracts were reflected as a Level 2 investment for the period ended June 30, 2021 due to a “limit up” condition;
−Removed: the July21 CBOT corn futures, Sep21 CBOT corn futures, and Dec21 CBOT corn futures, were reflected as a Level 2 investment for the period ended March 31, 2021 due to a “limit up” condition.
−Removed: The July21 corn futures transferred back to a Level 1 asset for the period ended June 30, 2021, and the Sep21 and Dec21 corn futures contracts remained a Level 2 asset for the quarter ended June 30, 2021.
+Added: the Jul21 CBOT corn futures, Sep21 CBOT corn futures, and Dec21 CBOT corn futures, were reflected as a Level 2 investment for the period ended March 31, 2021 due to a “limit up” condition.
+Added: The Jul21 corn futures transferred back to a Level 1 asset for the period ended June 30, 2021, and the Sep21 and Dec21 corn futures contracts transferred back to a Level 1 asset for the period ended September 30, 2021.
See the Fair Value - Definition and Hierarchy section in Note 3 above for an explanation of the transfers into and out of each level of the fair value hierarchy.
5 unchanged sentences
In addition to its primary underlying risks, the Fund is also subject to additional counterparty risk due to inability of its counterparties to meet the terms of their contracts.
−Removed: For three and six months ended June 30, 2021 and year ended December 31, 2020, the Fund invested only in commodity futures contracts.
+Added: For three and nine months ended September 30, 2021 and year ended December 31, 2020, the Fund invested only in commodity futures contracts.
Futures Contracts
14 unchanged sentences
Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.”
−Removed: 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 FCM, E D & F Man as of June 30, 2021 and December 31, 2020.
−Removed: Offsetting of Financial Assets and Derivative Assets as of June 30, 2021
+Added: The following table also identifies the fair value amounts of derivative instruments included in the combined statements of assets and liabilities as derivative contracts, categorized by primary underlying risk and held by the FCM, E D & F Man as of September 30, 2021 and December 31, 2020.
+Added: *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.
+Added: Offsetting of Financial Assets and Derivative Assets as of September 30, 2021
(iii) = (i)-(ii)
8 unchanged sentences
Corn futures contracts
−Removed: Offsetting of Financial Liabilities and Derivative Liabilities as of June 30, 2021
+Added: Offsetting of Financial Liabilities and Derivative Liabilities as of September 30, 2021
(iii) = (i)-(ii)
20 unchanged sentences
The following tables identify the net gain and loss amounts included in the statements of operations as realized and unrealized gains and losses on trading of commodity futures contracts categorized by primary underlying risk:
−Removed: Three months ended June 30, 2021
+Added: Three months ended September 30, 2021
Realized Gain on Commodity Futures Contracts
3 unchanged sentences
$ ( 16,642,507 )
−Removed: Three months ended June 30, 2020
−Removed: Realized Loss on Commodity Futures Contracts
+Added: Three months ended September 30, 2020
+Added: Realized Gain on Commodity Futures Contracts
Net Change in Unrealized Appreciation on Commodity Futures Contracts
1 unchanged sentence
Corn futures contracts
−Removed: $ ( 5,200,091 )
−Removed: Six months ended June 30, 2021
+Added: Nine months ended September 30, 2021
Realized Gain on Commodity Futures Contracts
3 unchanged sentences
$ ( 18,263,441 )
−Removed: Six months ended June 30, 2020
+Added: Nine months ended September 30, 2020
Realized Loss on Commodity Futures Contracts
5 unchanged sentences
Volume of Derivative Activities
−Removed: The average notional market value categorized by primary underlying risk for the futures contracts held was $ 185.5 million and $ 173.7 million, respectively, for the three and six months ended June 30, 2021, and $ 68.4 million and $ 66.9 million for the three and six months ended June 30, 2020, respectively.
+Added: The average notional market value categorized by primary underlying risk for the futures contracts held was $ 126.7 million and $ 154.1 million, respectively, for the three and nine months ended September 30, 2021, and $ 117.8 million and $ 83.3 million for the three and nine months ended September 30, 2020, respectively.
Note 6 – Financial Highlights
−Removed: The following tables present per unit performance data and other supplemental financial data for the three and six months ended June 30, 2021 and 2020.
+Added: The following tables present per unit performance data and other supplemental financial data for the three and nine months ended September 30, 2021 and 2020.
This information has been derived from information presented in the financial statements and is presented with total expenses gross of expenses waived by the Sponsor and with total expenses net of expenses waived by the Sponsor, as appropriate.
−Removed: Three months ended
−Removed: Three months ended
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Per Share Operation Performance
2 unchanged sentences
Investment income
−Removed: Net realized and unrealized gain (loss) on commodity futures contracts
+Added: Net realized and unrealized (loss) gain on commodity futures contracts
Total expenses, net
−Removed: Net increase (decrease) in net asset value
+Added: Net (decrease) increase in net asset value
Net asset value at end of period
8 unchanged sentences
Note 8 – Subsequent Events
−Removed: Management has evaluated the financial statements for the quarter-ended June 30, 2021 for subsequent events through the date of this filing and noted no material events requiring either recognition through the date of the filing or disclosure herein for the Fund other than those noted below:
−Removed: The continued uncertainty over the path of COVID-19 may continue to be highly disruptive to economies and markets.
+Added: Management has evaluated the financial statements for the quarter-ended September 30, 2021 for subsequent events through the date of this filing and noted no material events requiring either recognition through the date of the filing or disclosure herein for the Fund other than those noted below:
+Added: The continued uncertainty of COVID-19 may continue to be highly disruptive to economies and markets.
The impact of COVID-19 to the Fund is described in more detail in Part 2 of this 10-Q.
−Removed: The total net assets of the Fund decreased by $38,633,498 or 22% for the period June 30, 2021 to August 6, 2021.
−Removed: This was driven by a 3% decrease in the NAV per share and a 19% decrease in the shares outstanding.
TEUCRIUM SOYBEAN FUND
STATEMENTS OF ASSETS AND LIABILITIES
+Added: September 30,
Cash and cash equivalents
5 unchanged sentences
Management fee payable to Sponsor
+Added: Payable for purchase of commercial paper
Other liabilities
−Removed: Payable for purchases of commercial paper
Equity in trading accounts:
+Added: Commodity futures contracts
Due to broker
+Added: Total equity in trading accounts
Total liabilities
6 unchanged sentences
SCHEDULE OF INVESTMENTS
−Removed: June 30, 2021
+Added: September 30, 2021
Percentage of
1 unchanged sentence
Money market funds
−Removed: First American Government Obligations Fund - Class X (cost:
+Added: First American Funds - Government Obligations Fund - Class X (cost $2,548,576)
Goldman Sachs Financial Square Government Fund - Institutional Class (cost:
Total money market funds (cost:
−Removed: Principal Amount
Commercial Paper
−Removed: FMC Corporation 0.200% (cost:
+Added: Brookfield Infrastructure Holdings (Canada) Inc.
+Added: 0.178% (cost:
$4,998,737 due 11/03/2021)
5 unchanged sentences
$2,499,315 due 11/10/2021)
+Added: Glencore Funding LLC 0.150% (cost:
+Added: $2,499,105 due 10/06/2021)
Harley-Davidson Financial Services, Inc.
5 unchanged sentences
$2,499,170 due 10/29/2021)
−Removed: 0.210% (cost:
+Added: National Fuel Gas Company 0.200% (cost:
$2,499,708 due 10/08/2021)
6 unchanged sentences
CBOT soybean futures NOV22 (268 contracts)
−Removed: CBOT soybean futures JAN22 (307 contacts)
−Removed: CBOT soybean futures NOV22 (381 contacts)
+Added: Percentage of
+Added: Notional Amount
+Added: (Long Exposure)
+Added: Commodity futures contracts
+Added: United States soybean futures contracts
+Added: CBOT soybean futures JAN22 (261 contracts)
+Added: CBOT soybean futures MAR22 (222 contracts)
Total commodity futures contracts
9 unchanged sentences
Total money market funds (cost:
−Removed: Principal Amount
Commercial Paper
51 unchanged sentences
STATEMENTS OF OPERATIONS
−Removed: Three months ended
−Removed: Three months ended
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Realized and unrealized gain (loss) on trading of commodity futures contracts:
−Removed: Realized gain (loss) on commodity futures contracts
−Removed: $ ( 861,903 )
+Added: Realized gain on commodity futures contracts
+Added: Net change in unrealized appreciation/(depreciation) on commodity futures contracts
( 7,754,543 )
−Removed: Net change in unrealized appreciation or (depreciation) on commodity futures contracts
( 15,794,481 )
Interest income
−Removed: Total income (loss)
+Added: Total (loss) income
( 4,312,746 )
8 unchanged sentences
Total expenses, net
−Removed: Net income (loss)
+Added: Net (loss) income
$ ( 4,573,209 )
−Removed: Net income (loss) per share
−Removed: Net income (loss) per weighted average share
+Added: Net (loss) income per share
+Added: Net (loss) income per weighted average share
Weighted average shares outstanding
2 unchanged sentences
STATEMENTS OF CHANGES IN NET ASSETS
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: Net income (loss)
−Removed: $ ( 2,887,026 )
+Added: September 30,
+Added: September 30,
Capital transactions
9 unchanged sentences
Net assets, end of period
+Added: $ 128,509,361
Net asset value per share at beginning of period
5 unchanged sentences
STATEMENTS OF CASH FLOWS
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
Cash flows from operating activities:
−Removed: Net income (loss)
+Added: Adjustments to reconcile net income to net cash provided by operating activities:
+Added: Net change in unrealized depreciation (appreciation) on commodity futures contracts
( 7,292,203 )
−Removed: Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
−Removed: Net change in unrealized depreciation on commodity futures contracts
Changes in operating assets and liabilities:
2 unchanged sentences
Interest receivable
+Added: Payable for purchases of commercial paper
+Added: ( 4,997,451 )
Due to broker
1 unchanged sentence
Management fee payable to Sponsor
−Removed: Payable for purchases of commercial paper
−Removed: ( 4,997,451 )
Other liabilities
−Removed: Net cash provided by (used in) operating activities
−Removed: ( 5,441,979 )
+Added: Net cash provided by operating activities
Cash flows from financing activities:
9 unchanged sentences
Cash and cash equivalents end of period
+Added: $ 126,155,451
The accompanying notes are an integral part of these financial statements.
NOTES TO FINANCIAL STATEMENTS
−Removed: June 30, 2021
+Added: September 30, 2021
Note 1 – Organization and Operation
24 unchanged sentences
It is suggested that these interim financial statements be read in conjunction with the financial statements and related notes included in the Trust’s Annual Report on Form 10-K, as well as the most recent Form S-1 filing, as applicable.
−Removed: The operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021.
+Added: The operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021.
Subject to the terms of the Trust Agreement, Teucrium Trading, LLC, in its capacity as the Sponsor (“Sponsor”), may terminate a Fund at any time, regardless of whether the Fund has incurred losses, including, for instance, if it determines that the Fund’s aggregate net assets in relation to its operating expenses make the continued operation of the Fund unreasonable or imprudent.
43 unchanged sentences
A summary of these expenses is included below:
−Removed: Three months ended
−Removed: June 30, 2021
−Removed: Three months ended
−Removed: June 30, 2020
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: Six months ended
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Amount Recognized for Custody Services
23 unchanged sentences
Accretion on these investments is recognized using the effective interest method in U.S.
−Removed: dollars and included in interest income on the combined statements of operations.
+Added: dollars and included in interest income on the statements of operations.
Brokerage Commissions
1 unchanged sentence
Prior to the change, brokerage commissions on all open commodity futures contracts were accrued on the trade date and on a full-turn basis.
−Removed: The below table shows the amounts included on the statements of operations as total brokerage commissions paid inclusive of unrealized loss for the three and six months ended June 30, 2021.
−Removed: Three Months Ended June 30, 2021
−Removed: Three Months Ended June 30, 2020
−Removed: Six Months Ended June 30, 2021
−Removed: Six Months Ended June 30, 2020
−Removed: The Trust is organized and will be operated as a Delaware statutory trust.
+Added: The below table shows the amounts included on the statements of operations as total brokerage commissions paid inclusive of unrealized loss for the three and nine months ended September 30, 2021 and 2020.
+Added: Three months ended September 30, 2021
+Added: Three months ended September 30, 2020
+Added: Nine months ended September 30, 2021
+Added: Nine months ended September 30, 2020
For federal income tax purposes, each Fund will be treated as a publicly traded partnership.
12 unchanged sentences
De-recognition of a tax benefit previously recognized results in the Fund recording a tax liability that reduces net assets.
−Removed: Based on its analysis, the Fund has determined that it has not incurred any liability for unrecognized tax benefits as of June 30, 2021 and for the years ended December 31, 2020, 2019, and 2018.
+Added: Based on its analysis, the Fund has determined that it has not incurred any liability for unrecognized tax benefits as of September 30, 2021 and for the years ended December 31, 2020, 2019, and 2018.
However, the Fund’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, ongoing analysis of and changes to tax laws, regulations, and interpretations thereof.
The Fund recognizes interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed.
−Removed: No interest expense or penalties have been recognized as of and for the three and six months ended June 30, 2021 and 2020.
+Added: No interest expense or penalties have been recognized as of and for the three and nine months ended September 30, 2021 and 2020.
The Fund may be subject to potential examination by U.S.
26 unchanged sentences
The Sponsor may invest a portion of the cash held by the FCM in short term Treasury Bills as collateral for open futures contracts, which is classified as a cash equivalent and is not FDIC insured.
−Removed: June 30, 2021
−Removed: December 31, 2020
+Added: September 30,
Money Market Funds
2 unchanged sentences
Total cash and cash equivalents as presented on the Statement of Assets and Liabilities
+Added: Payable for Purchases of Commercial Paper
+Added: The amount recorded by the Fund for commercial paper transactions awaiting settlement, represents the amount payable for contracts purchased but not yet settled as of the reporting date.
+Added: The value of the contract is included in cash and cash equivalents, and the payable amount is included as a liability.
Due from/to Broker
44 unchanged sentences
Such expenses are primarily recorded as distribution and marketing fees in the financial statements of each Fund.
−Removed: Three months ended
−Removed: June 30, 2021
−Removed: Three months ended
−Removed: June 30, 2020
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: Six months ended
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Recognized Related Party Transactions
4 unchanged sentences
The Sponsor has determined that there will be no recovery sought for the amounts below in any future period:
−Removed: Three months ended June 30, 2021
−Removed: Three months ended June 30, 2020
−Removed: Six months ended June 30, 2021
−Removed: Six months ended June 30, 2020
+Added: Three months ended September 30, 2021
+Added: Three months ended September 30, 2020
+Added: Nine months ended September 30, 2021
+Added: Nine months ended September 30, 2020
Use of Estimates
29 unchanged sentences
When such a situation exists on a quarter close, the Sponsor will calculate the NAV on a particular day using the Level 1 valuation but will later recalculate the NAV for the impacted Fund based upon the valuation inputs from these alternative verifiable sources (Level 2 or Level 3) and will report such NAV in its applicable financial statements and reports.
−Removed: On June 30, 2021 and December 31, 2020, in the opinion of the Trust and the Fund, the reported value at the close of the market for each commodity contract fairly reflected the value of the futures and no alternative valuations were required.
+Added: On September 30, 2021 and December 31, 2020, in the opinion of the Trust and the Fund, the reported value at the close of the market for each commodity contract fairly reflected the value of the futures and no alternative valuations were required.
The determination is made as of the settlement of the futures contracts on the last day of trading for the reporting period.
16 unchanged sentences
The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-05:
+Added: “Leases (Topic 842).” Under the amended guidance, a lessor should classify and account for a lease with variable lease payments that don’t depend on an index or a rate as an operating lease if the lease would’ve been classified as a sales-type lease or a direct financing lease in accordance with the lease classification guidance in Topic 842 and the lessor would’ve otherwise recognized a day-one loss.
+Added: The amendment was adopted early for the quarter ended September 30, 2021;
+Added: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The FASB issued ASU 2020-10:
“Codification Improvements.” The amendment improves the disclosure guidance in appropriate Disclosure Sections, without resulting in changes to current GAAP.
The amendment is effective for annual periods beginning after December 15, 2020.
−Removed: The Sponsor is evaluating the impacts, but the amendment is not expected to have a material impact on the financial statements of the Trust or the Fund.
−Removed: The FASB issued Accounting Standards Update (“ASU”) 2020-02:
+Added: The amendment was adopted for the quarter ended March 31, 2021;
+Added: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The FASB issued 2020-02:
“Financial Instruments Credit Losses (Topic 326) and Leases (Topic 842):
3 unchanged sentences
The amendment updates and adds language to ASU 2016-02.
−Removed: The amendments were adopted for the quarter ended March 31, 2020;
−Removed: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The amendments were adopted for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
The FASB issued ASU 2020-01:
1 unchanged sentence
The amendments clarify the treatment of transactions that require a company to apply or discontinue the equity method of accounting.
−Removed: The amendments were adopted early for the quarter ended March 31, 2020;
−Removed: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The amendments were adopted early for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
The FASB issued ASU 2019-01:
21 unchanged sentences
The Fund’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in the Fund’s significant accounting policies in Note 3.
−Removed: The following table presents information about the Fund’s assets and liabilities measured at fair value as of June 30, 2021 and December 31, 2020:
−Removed: June 30, 2021
−Removed: Balance as of June 30, 2021
+Added: The following table presents information about the Fund’s assets and liabilities measured at fair value as of September 30, 2021 and December 31, 2020:
+Added: September 30, 2021
+Added: Balance as of September 30,
Cash Equivalents
1 unchanged sentence
Soybean futures contracts
+Added: Balance as of September 30,
+Added: Commodity Futures Contracts
+Added: Soybean futures contracts
December 31, 2020
3 unchanged sentences
Soybean futures contracts
−Removed: For the three months ended June 30, 2021 and year ended December 31, 2020, the Fund did not have any significant transfers between any of the levels of the fair value hierarchy, except for the Jul21 CBOT soybean futures, and the Nov21 CBOT soybean futures, were reflected as a Level 2 asset for the period ended March 31, 2021 due to a “limit up” condition.
+Added: For the three months ended September 30, 2021 and year ended December 31, 2020, the Fund did not have any significant transfers between any of the levels of the fair value hierarchy, except for the Jul21 CBOT soybean futures, and the Nov21 CBOT soybean futures, were reflected as a Level 2 asset for the period ended March 31, 2021 due to a “limit up” condition.
These Soybean contracts transferred back to a Level 1 asset for the period ended June 30, 2021.
6 unchanged sentences
In addition to its primary underlying risks, the Fund is also subject to additional counterparty risk due to inability of its counterparties to meet the terms of their contracts.
−Removed: For the three and six months ended June 30, 2021 and year ended December 31, 2020, the Fund invested only in commodity futures contracts.
+Added: For the three and nine months ended September 30, 2021 and year ended December 31, 2020, the Fund invested only in commodity futures contracts.
Futures Contracts
14 unchanged sentences
Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.”
−Removed: 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 FCM, E D & F Man as of June 30, 2021 and December 31, 2020.
−Removed: Offsetting of Financial Assets and Derivative Assets as of June 30, 2021
+Added: The following table also identifies the fair value amounts of derivative instruments included in the combined statements of assets and liabilities as derivative contracts, categorized by primary underlying risk and held by the FCM, E D & F Man as of September 30, 2021 and December 31, 2020.
+Added: *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.
+Added: Offsetting of Financial Assets and Derivative Assets as of September 30, 2021
(iii) = (i)-(ii)
8 unchanged sentences
Soybean futures contracts
+Added: Offsetting of Financial Liabilities and Derivative Liabilities as of September 30, 2021
+Added: (iii) = (i)-(ii)
+Added: (v)=(iii)-(iv)
+Added: Gross Amount Not Offset in the Statement of Assets and Liabilities
+Added: Gross Amount of Recognized Liabilities
+Added: Gross Amount Offset in the Statement of Assets and Liabilities
+Added: Net Amount Presented in the Statement of Assets and Liabilities
+Added: Futures Contracts Available for Offset
+Added: Collateral, Due from Broker*
+Added: Commodity Price
+Added: Soybean futures contracts
Offsetting of Financial Assets and Derivative Assets as of December 31, 2020
10 unchanged sentences
The following is a summary of realized and unrealized gains and losses of the derivative instruments utilized by the Fund:
−Removed: Three months ended June 30, 2021
+Added: Three months ended September 30, 2021
Realized Gain on Commodity Futures Contracts
−Removed: Net Change in Unrealized Appreciation on Commodity Futures Contracts
+Added: Net Change in Unrealized Depreciation on Commodity Futures Contracts
Commodity Price
Soybean futures contracts
−Removed: Three months ended June 30, 2020
−Removed: Realized Loss on Commodity Futures Contracts
+Added: $ ( 7,754,543 )
+Added: Three months ended September 30, 2020
+Added: Realized Gain on Commodity Futures Contracts
Net Change in Unrealized Appreciation on Commodity Futures Contracts
1 unchanged sentence
Soybean futures contracts
−Removed: $ ( 861,903 )
−Removed: Six months ended June 30, 2021
+Added: Nine months ended September 30, 2021
Realized Gain on Commodity Futures Contracts
3 unchanged sentences
$ ( 15,794,481 )
−Removed: Six months ended June 30, 2020
−Removed: Realized Loss on Commodity Futures Contracts
−Removed: Net Change in Unrealized Depreciation on Commodity Futures Contracts
+Added: Nine months ended September 30, 2020
+Added: Realized Gain on Commodity Futures Contracts
+Added: Net Change in Unrealized Appreciation on Commodity Futures Contracts
Commodity Price
Soybean futures contracts
−Removed: $ ( 1,718,118 )
−Removed: $ ( 809,552 )
Volume of Derivative Activities
−Removed: The average notional market value categorized by primary underlying risk for all futures contracts held was $ 83.6 million and $ 90.3 million, respectively for the three and six months ended June 30, 2021 and, and $ 37.9 million and $ 31.0 million for the three and six months ended June 30, 2020, respectively.
+Added: The average notional market value categorized by primary underlying risk for all futures contracts held was $ 54.6 million and $ 80.7 million, respectively for the three and nine months ended September 30, 2021 and, and $ 89.2 million and $ 48.1 million for the three and nine months ended September 30, 2020, respectively.
Note 6 – Financial Highlights
−Removed: The following tables present per unit performance data and other supplemental financial data for the three and six months ended June 30, 2021 and 2020.
+Added: The following tables present per unit performance data and other supplemental financial data for the three and nine months ended September 30, 2021 and 2020.
This information has been derived from information presented in the financial statements and is presented with total expenses gross of expenses waived by the Sponsor and with total expenses net of expenses waived by the Sponsor, as appropriate.
−Removed: FINANCIAL HIGHLIGHTS - Unaudited
Three months ended
Three months ended
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: Nine months ended
+Added: Nine months ended
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Per Share Operation Performance
2 unchanged sentences
Investment income
−Removed: Net realized and unrealized gain (loss) on commodity futures contracts
+Added: Net realized and unrealized (loss) gain on commodity futures contracts
Total expenses, net
−Removed: Net increase (decrease) in net asset value
+Added: Net (decrease) increase in net asset value
Net asset value at end of period
8 unchanged sentences
Note 8 – Subsequent Events
−Removed: Management has evaluated the financial statements for the quarter-ended June 30, 2021 for subsequent events through the date of this filing and noted no material events requiring either recognition through the date of the filing or disclosure herein for the Fund other than those noted below:
−Removed: The continued uncertainty over the path of COVID-19 may continue to be highly disruptive to economies and markets.
+Added: Management has evaluated the financial statements for the quarter-ended September 30, 2021 for subsequent events through the date of this filing and noted no material events requiring either recognition through the date of the filing or disclosure herein for the Fund other than those noted below:
+Added: The continued uncertainty of COVID-19 may continue to be highly disruptive to economies and markets.
The impact of COVID-19 to the Fund is described in more detail in Part 2 of this 10-Q.
1 unchanged sentence
STATEMENTS OF ASSETS AND LIABILITIES
−Removed: June 30, 2021
−Removed: December 31, 2020
+Added: September 30,
Cash and cash equivalents
14 unchanged sentences
SCHEDULE OF INVESTMENTS
−Removed: June 30, 2021
+Added: September 30, 2021
Percentage of
2 unchanged sentences
First American Government Obligations Fund - Class X (cost $7,684,840)
−Removed: Goldman Sachs Financial Square Government Fund (cost $1,800)
+Added: Goldman Sachs Financial Square Government Fund - Institutional Class (cost $5,161)
Total money market funds (cost:
3 unchanged sentences
$4,998,584 due 10/19/2021)
−Removed: Brookfield Infrastructure Holdings Inc.
−Removed: 0.213% (cost:
+Added: National Fuel Gas Company 0.200% (cost:
$2,499,708 due 10/08/2021)
5 unchanged sentences
United States sugar futures contracts
−Removed: ICE sugar futures MAR22 (382 contracts)
ICE sugar futures MAY22 (414 contracts)
+Added: ICE sugar futures JUL22 (368 contracts)
ICE sugar futures MAR23 (439 contracts)
27 unchanged sentences
STATEMENTS OF OPERATIONS
−Removed: Three months ended
−Removed: Three months ended
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Realized and unrealized gain (loss) on trading of commodity futures contracts:
1 unchanged sentence
$ ( 763,390 )
−Removed: $ ( 947,539 )
−Removed: Net change in unrealized appreciation or (depreciation) on commodity futures contracts
+Added: Net change in unrealized appreciation on commodity futures contracts
Interest income
Total income (loss)
−Removed: ( 1,356,340 )
Management fees
16 unchanged sentences
STATEMENTS OF CHANGES IN NET ASSETS
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
Net income (loss)
6 unchanged sentences
Total capital transactions
−Removed: ( 1,917,938 )
Net change in net assets
−Removed: ( 3,439,815 )
Net assets, beginning of period
7 unchanged sentences
STATEMENTS OF CASH FLOWS
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
Cash flows from operating activities:
2 unchanged sentences
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
−Removed: Net change in unrealized (appreciation) depreciation on commodity futures contracts
+Added: Net change in unrealized appreciation on commodity futures contracts
Changes in operating assets and liabilities:
11 unchanged sentences
( 7,805,796 )
−Removed: Net cash provided by (used in) financing activities
−Removed: ( 1,917,938 )
+Added: Net cash provided by financing activities
Net change in cash and cash equivalents
4 unchanged sentences
NOTES TO FINANCIAL STATEMENTS
−Removed: June 30, 2021
+Added: September 30, 2021
Note 1 – Organization and Operation
25 unchanged sentences
It is suggested that these interim financial statements be read in conjunction with the financial statements and related notes included in the Trust’s Annual Report on Form 10-K, as well as the most recent Form S-1 filing, as applicable.
−Removed: The operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021.
+Added: The operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021.
Subject to the terms of the Trust Agreement, Teucrium Trading, LLC, in its capacity as the Sponsor (“Sponsor”), may terminate a Fund at any time, regardless of whether the Fund has incurred losses, including, for instance, if it determines that the Fund’s aggregate net assets in relation to its operating expenses make the continued operation of the Fund unreasonable or imprudent.
43 unchanged sentences
A summary of these expenses is included below:
−Removed: Three months ended June 30, 2021
−Removed: Three months ended June 30, 2020
−Removed: Six months ended June 30, 2021
−Removed: Six months ended June 30, 2020
+Added: Three month ended
+Added: Three month ended
+Added: Nine month ended
+Added: Nine month ended
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Amount Recognized for Custody Services
14 unchanged sentences
Unrealized appreciation or depreciation on commodity futures contracts are reflected in the statements of operations as the difference between the original contract amount and the fair market value as of the last business day of the year or as of the last date of the financial statements.
−Removed: Beginning on August 21, 2019, brokerage commission expenses were recognized on a per-trade basis.
−Removed: The half-turn is recognized as an unrealized loss on the statements of operations for contracts that have been purchased since the change in recognition, and a full turn is recognized as a realized loss on the statements of operations when a contract is sold.
Changes in the appreciation or depreciation between periods are reflected in the statements of operations.
6 unchanged sentences
Accretion on these investments are recognized using the effective interest method in U.S.
−Removed: dollars and included in interest income on the combined statements of operations.
+Added: dollars and included in interest income on the statements of operations.
Brokerage Commissions
1 unchanged sentence
Prior to the change, brokerage commissions on all open commodity futures contracts were accrued on the trade date and on a full-turn basis.
−Removed: The below table shows the amounts included on the statements of operations as total brokerage commissions paid inclusive of unrealized loss for the three and six months ended June 30, 2021.
−Removed: Three Months Ended June 30, 2021
−Removed: Three Months Ended June 30, 2020
−Removed: Six Months Ended June 30, 2021
−Removed: Six Months Ended June 30, 2020
+Added: The below table shows the amounts included on the statements of operations as total brokerage commissions paid inclusive of unrealized loss for the three and nine months ended September 30, 2021.
+Added: Three months ended September 30, 2021
+Added: Three months ended September 30, 2020
+Added: Nine months ended September 30, 2021
+Added: Nine months ended September 30, 2020
For federal income tax purposes, the Fund will be treated as a publicly traded partnership.
5 unchanged sentences
The financial statements reflect the Fund’s transactions without adjustment, if any, required for income tax purposes.
+Added: The Fund is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position.
+Added: The Fund files an income tax return in the U.S.
+Added: federal jurisdiction and may file income tax returns in various U.S.
+Added: states and foreign jurisdictions.
+Added: For all tax years 2018 to 2020, the Fund remains subject to income tax examinations by major taxing authorities.
+Added: The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement.
+Added: De-recognition of a tax benefit previously recognized results in the Fund recording a tax liability that reduces net assets.
+Added: Based on its analysis, the Fund has determined that it has not incurred any liability for unrecognized tax benefits as of September 30, 2021 and for the years ended December 31, 2020, 2019, and 2018.
+Added: However, the Fund’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, ongoing analysis of and changes to tax laws, regulations, and interpretations thereof.
+Added: The Fund recognizes interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed.
+Added: No interest expense or penalties have been recognized as of and for the three and nine months ended September 30, 2021 and 2020.
+Added: The Fund may be subject to potential examination by U.S.
+Added: federal, U.S.
+Added: state, or foreign jurisdictional authorities in the area of income taxes.
+Added: These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions, and compliance with U.S.
+Added: federal, U.S.
+Added: state and foreign tax laws.
Creations and Redemptions
20 unchanged sentences
The Sponsor may invest a portion of the cash held by the broker in short term Treasury Bills as collateral for open futures contracts, which is classified as a cash equivalent and is not FDIC insured.
−Removed: June 30, 2021
−Removed: December 31, 2020
+Added: September 30,
Money Market Funds
48 unchanged sentences
Such expenses are primarily recorded as distribution and marketing fees in the financial statements of each Fund.
−Removed: Three months ended June 30, 2021
−Removed: Three months ended June 30, 2020
−Removed: Six months ended June 30, 2021
−Removed: Six months ended June 30, 2020
+Added: Three months ended
+Added: Three months ended
+Added: Nine months ended
+Added: Nine months ended
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Recognized Related Party Transactions
4 unchanged sentences
The Sponsor has determined that there will be no recovery sought for the amounts below in any future period:
−Removed: Three months ended June 30, 2021
−Removed: Three months ended June 30, 2020
−Removed: Six months ended June 30, 2021
−Removed: Six months ended June 30, 2020
+Added: Three months ended September 30, 2021
+Added: Three months ended September 30, 2020
+Added: Nine months ended September 30, 2021
+Added: Nine months ended September 30, 2020
Use of Estimates
29 unchanged sentences
When such a situation exists on a quarter close, the Sponsor will calculate the NAV on a particular day using the Level 1 valuation but will later recalculate the NAV for the impacted Fund based upon the valuation inputs from these alternative verifiable sources (Level 2 or Level 3) and will report such NAV in its applicable financial statements and reports.
−Removed: On June 30, 2021 and December 31, 2020, in the opinion of the Trust and the Fund, the reported value of the Sugar Futures Contracts traded on the ICE fairly reflected the value of the Sugar Futures Contracts held by the Fund, and no adjustments were necessary.
+Added: On September 30, 2021 and December 31, 2020, in the opinion of the Trust and the Fund, the reported value of the Sugar Futures Contracts traded on the ICE fairly reflected the value of the Sugar Futures Contracts held by the Fund, and no adjustments were necessary.
The determination is made as of the settlement of the futures contracts on the last day of trading for the reporting period.
In making the determination of a Level 1 or Level 2 transfer, the Fund considers the average volume of the specific underlying futures contracts traded on the relevant exchange for the periods being reported.
−Removed: For the three and six months ended June 30, 2021 and year ended December 31, 2020, the Fund did not have any significant transfers between any of the levels of the fair value hierarchy.
+Added: For the three and nine months ended September 30, 2021 and year ended December 31, 2020, the Fund did not have any significant transfers between any of the levels of the fair value hierarchy.
The Fund records its derivative activities at fair value.
10 unchanged sentences
The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-05:
+Added: “Leases (Topic 842).” Under the amended guidance, a lessor should classify and account for a lease with variable lease payments that don’t depend on an index or a rate as an operating lease if the lease would’ve been classified as a sales-type lease or a direct financing lease in accordance with the lease classification guidance in Topic 842 and the lessor would’ve otherwise recognized a day-one loss.
+Added: The amendment was adopted early for the quarter ended September 30, 2021;
+Added: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The FASB issued ASU 2020-10:
“Codification Improvements.” The amendment improves the disclosure guidance in appropriate Disclosure Sections, without resulting in changes to current GAAP.
The amendment is effective for annual periods beginning after December 15, 2020.
−Removed: The Sponsor is evaluating the impacts, but the amendment is not expected to have a material impact on the financial statements of the Trust or the Fund.
−Removed: The FASB issued Accounting Standards Update (“ASU”) 2020-02:
+Added: The amendment was adopted for the quarter ended March 31, 2021;
+Added: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The FASB issued 2020-02:
“Financial Instruments Credit Losses (Topic 326) and Leases (Topic 842):
3 unchanged sentences
The amendment updates and adds language to ASU 2016-02.
−Removed: The amendments were adopted for the quarter ended March 31, 2020;
−Removed: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The amendments were adopted for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
The FASB issued ASU 2020-01:
1 unchanged sentence
The amendments clarify the treatment of transactions that require a company to apply or discontinue the equity method of accounting.
−Removed: The amendments were adopted early for the quarter ended March 31, 2020;
−Removed: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The amendments were adopted early for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
The FASB issued ASU 2019-01:
21 unchanged sentences
The Fund’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in the Fund’s significant accounting policies in Note 3.
−Removed: The following table presents information about the Fund’s assets and liabilities measured at fair value as of June 30, 2021 and December 31, 2020:
−Removed: June 30, 2021
−Removed: Balance as of June 30, 2021
+Added: The following table presents information about the Fund’s assets and liabilities measured at fair value as of September 30, 2021 and December 31, 2020:
+Added: September 30, 2021
+Added: Balance as of September 30,
Cash Equivalents
6 unchanged sentences
Sugar futures contracts
−Removed: For the three months ended June 30, 2021 and year ended December 31, 2020, the Fund did not have any significant transfers between any of the levels of the fair value hierarchy.
+Added: For the period September 30, 2021 and year ended December 31, 2020, the Fund did not have any significant transfers between any of the levels of the fair value hierarchy.
See the Fair Value – Definition and Hierarchy section in Note 3 above for an explanation of the transfers into and out of each level of the fair value hierarchy.
5 unchanged sentences
In addition to its primary underlying risks, the Fund is also subject to additional counterparty risk due to inability of its counterparties to meet the terms of their contracts.
−Removed: For the three and six months ended June 30, 2021 and year ended December 31, 2020, the Fund invested only in commodity futures contracts.
+Added: For the three and nine months ended September 30, 2021 and year ended December 31, 2020, the Fund invested only in commodity futures contracts.
Futures Contracts
14 unchanged sentences
Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.”
−Removed: 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 FCM, E D & F Man as of June 30, 2021 and December 31, 2020.
−Removed: Offsetting of Financial Assets and Derivative Assets as of June 30, 2021
+Added: The following table also identifies the fair value amounts of derivative instruments included in the combined statements of assets and liabilities as derivative contracts, categorized by primary underlying risk and held by the FCM, E D & F Man as of September 30, 2021 and December 31, 2020.
+Added: *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.
+Added: Offsetting of Financial Assets and Derivative Assets as of September 30, 2021
(iii) = (i)-(ii)
20 unchanged sentences
The following tables identify the net gain and loss amounts included in the statements of operations as realized and unrealized gains and losses on trading of commodity futures contracts categorized by primary underlying risk:
−Removed: Three months ended June 30, 2021
+Added: Three months ended September 30, 2021
Realized Gain on Commodity Futures Contracts
2 unchanged sentences
Sugar futures contracts
−Removed: Three months ended June 30, 2020
−Removed: Realized Loss on Commodity Futures Contracts
+Added: Three months ended September 30, 2020
+Added: Realized Gain on Commodity Futures Contracts
Net Change in Unrealized Appreciation on Commodity Futures Contracts
1 unchanged sentence
Sugar futures contracts
−Removed: $ ( 1,239,596 )
−Removed: Six months ended June 30, 2021
+Added: Nine months ended September 30, 2021
Realized Gain on Commodity Futures Contracts
2 unchanged sentences
Sugar futures contracts
−Removed: Six months ended June 30, 2020
+Added: Nine months ended September 30, 2020
Realized Loss on Commodity Futures Contracts
−Removed: Net Change in Unrealized Depreciation on Commodity Futures Contracts
+Added: Net Change in Unrealized Appreciation on Commodity Futures Contracts
Commodity Price
1 unchanged sentence
$ ( 763,390 )
−Removed: $ ( 466,909 )
Volume of Derivative Activities
−Removed: The average notional market value categorized by primary underlying risk for all futures contracts held were $ 19.9 million and $ 17.4 million, respectively, for the three and six months ended June 30, 2021, and $ 7.8 million and $ 8.7 million, respectively, for the three and six months ended June 30, 2020.
+Added: The average notional market value categorized by primary underlying risk for all futures contracts held were $ 24.4 million and $ 18.9 million, respectively, for the three and nine months ended September 30, 2021, and $ 11.9 million and $ 10.1 million, respectively, for the three and nine months ended September 30, 2020.
Note 6 – Financial Highlights
−Removed: The following table presents per unit performance data and other supplemental financial data for the three and six months ended June 30, 2021 and 2020.
+Added: The following table presents per unit performance data and other supplemental financial data for the three and nine months ended September 30, 2021 and 2020.
This information has been derived from information presented in the financial statements and is presented with total expenses gross of expenses waived by the Sponsor and with total expenses net of expenses waived by the Sponsor, as appropriate.
1 unchanged sentence
Three months ended
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: Nine months ended
+Added: Nine months ended
+Added: September 30, 2021
+Added: September 30, 2020
+Added: September 30, 2021
+Added: September 30, 2020
Per Share Operation Performance
15 unchanged sentences
Note 8 – Subsequent Events
−Removed: Management has evaluated the financial statements for the quarter-ended June 30, 2021 for subsequent events through the date of this filing and noted no material events requiring either recognition through the date of the filing or disclosure herein for the Fund other than those noted below:
−Removed: The continued uncertainty over the path of COVID-19 may continue to be highly disruptive to economies and markets.
+Added: Management has evaluated the financial statements for the quarter-ended September 30, 2021 for subsequent events through the date of this filing and noted no material events requiring either recognition through the date of the filing or disclosure herein for the Fund other than those noted below:
+Added: The continued uncertainty of COVID-19 may continue to be highly disruptive to economies and markets.
The impact of COVID-19 to the Fund is described in more detail in Part 2 of this 10-Q.
1 unchanged sentence
STATEMENTS OF ASSETS AND LIABILITIES
−Removed: June 30, 2021
−Removed: December 31, 2020
+Added: September 30,
Cash and cash equivalents
7 unchanged sentences
Management fee payable to Sponsor
+Added: Payable for purchases of commercial paper
Other liabilities
Equity in trading accounts:
−Removed: Commodity futures contracts
Due to broker
−Removed: Total equity in trading accounts
Total liabilities
6 unchanged sentences
SCHEDULE OF INVESTMENTS
−Removed: June 30, 2021
+Added: September 30, 2021
Percentage of
6 unchanged sentences
Commercial Paper
−Removed: Canadian Natural Resources Limited 0.140% (cost:
−Removed: $4,999,495 due 07/26/2021)
−Removed: General Motors Financial Company, Inc.
+Added: Brookfield Infrastructure Holdings (Canada) Inc.
0.178% (cost:
3 unchanged sentences
$2,499,083 due 10/04/2021)
−Removed: Harley-Davidson Financial Services, Inc.
+Added: General Motors Financial Company, Inc.
0.172% (cost:
8 unchanged sentences
$2,499,170 due 10/29/2021)
−Removed: 0.210% (cost:
−Removed: $2,499,388 due 07/16/2021)
−Removed: 0.300% (cost:
−Removed: $2,498,375 due 08/27/2021)
−Removed: 0.174% (cost:
+Added: National Fuel Gas Company 0.200% (cost:
$2,499,708 due 10/08/2021)
9 unchanged sentences
United States wheat futures contracts
−Removed: CBOT wheat futures SEP21 (889 contracts)
+Added: CBOT wheat futures MAR22 (695 contracts)
+Added: CBOT wheat futures MAY22 (593 contracts)
CBOT wheat futures DEC22 (708 contracts)
Total commodity futures contracts
−Removed: Percentage of
−Removed: Notional Amount
−Removed: (Long Exposure)
−Removed: Commodity futures contracts
−Removed: United States wheat futures contracts
−Removed: CBOT wheat futures DEC22 (861 contracts)
The accompanying notes are an integral part of these financial statements.
55 unchanged sentences
STATEMENTS OF OPERATIONS
−Removed: Three months ended
−Removed: Three months ended
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Realized and unrealized gain (loss) on trading of commodity futures contracts:
−Removed: Realized gain (loss) on commodity futures contracts
−Removed: $ ( 285,793 )
+Added: Realized gain on commodity futures contracts
Net change in unrealized appreciation/(depreciation) on commodity futures contracts
( 1,199,756 )
−Removed: ( 1,805,050 )
−Removed: ( 6,884,216 )
Interest income
−Removed: Total income (loss)
−Removed: ( 6,046,568 )
−Removed: ( 6,389,721 )
Management fees
7 unchanged sentences
Total expenses, net
−Removed: Net income (loss)
−Removed: $ ( 6,472,338 )
−Removed: $ ( 7,243,043 )
Net income (loss) per share
−Removed: Net income (loss) per weighted average share
+Added: Net income per weighted average share
Weighted average shares outstanding
2 unchanged sentences
STATEMENTS OF CHANGES IN NET ASSETS
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: Net income (loss)
−Removed: $ ( 7,243,043 )
+Added: September 30,
+Added: September 30,
Capital transactions
4 unchanged sentences
Total capital transactions
−Removed: Net change in net assets
( 7,807,965 )
+Added: Net change in net assets
Net assets, beginning of period
7 unchanged sentences
STATEMENTS OF CASH FLOWS
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
Cash flows from operating activities:
−Removed: Net income (loss)
−Removed: $ ( 7,243,043 )
−Removed: Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
+Added: Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Net change in unrealized depreciation on commodity futures contracts
1 unchanged sentence
Due from broker
−Removed: ( 5,453,399 )
−Removed: ( 4,786,517 )
Interest receivable
2 unchanged sentences
( 4,258,410 )
+Added: Payable for purchases of commercial paper
Management fee payable to Sponsor
7 unchanged sentences
( 5,089,221 )
−Removed: Net cash provided by financing activities
−Removed: Net change in cash and cash equivalents
+Added: Net cash (used in) provided by financing activities
( 9,962,775 )
+Added: Net change in cash and cash equivalents
Cash and cash equivalents, beginning of period
2 unchanged sentences
NOTES TO FINANCIAL STATEMENTS
−Removed: June 30, 2021
+Added: September 30, 2021
Note 1 – Organization and Operation
25 unchanged sentences
It is suggested that these interim financial statements be read in conjunction with the financial statements and related notes included in the Trust’s Annual Report on Form 10-K, as well as the most recent Form S-1 filing, as applicable.
−Removed: The operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021.
+Added: The operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021.
Subject to the terms of the Trust Agreement, Teucrium Trading, LLC, in its capacity as the Sponsor (“Sponsor”), may terminate a Fund at any time, regardless of whether the Fund has incurred losses, including, for instance, if it determines that the Fund’s aggregate net assets in relation to its operating expenses make the continued operation of the Fund unreasonable or imprudent.
43 unchanged sentences
A summary of these expenses is included below:
−Removed: Three months ended June 30, 2021
−Removed: Three months ended June 30, 2020
−Removed: Six months ended June 30, 2021
−Removed: Six months ended June 30, 2020
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Amount Recognized for Custody Services
14 unchanged sentences
Unrealized appreciation or depreciation on commodity futures contracts are reflected in the statements of operations as the difference between the original contract amount and the fair market value as of the last business day of the year or as of the last date of the financial statements.
−Removed: Beginning on August 21, 2019, brokerage commission expenses were recognized on a per-trade basis.
−Removed: The half-turn is recognized as an unrealized loss on the statements of operations for contracts that have been purchased since the change in recognition, and a full turn is recognized as a realized loss on the statements of operations when a contract is sold.
Changes in the appreciation or depreciation between periods are reflected in the statements of operations.
10 unchanged sentences
Prior to the change, brokerage commissions on all open commodity futures contracts were accrued on the trade date and on a full-turn basis.
−Removed: The below table shows the amounts included on the statements of operations as total brokerage commissions paid inclusive of unrealized loss for the three and six months ended June 30, 2021.
−Removed: Three Months Ended June 30, 2021
−Removed: Three Months Ended June 30, 2020
−Removed: Six Months Ended June 30, 2021
−Removed: Six Months Ended June 30, 2020
+Added: The below table shows the amounts included on the statements of operations as total brokerage commissions paid inclusive of unrealized loss for the three and nine months ended September 30, 2021 and 2020.
+Added: Three months ended September 30, 2021
+Added: Three months ended September 30, 2020
+Added: Nine months ended September 30, 2021
+Added: Nine months ended September 30, 2020
For federal income tax purposes, the Fund will be treated as a publicly traded partnership.
12 unchanged sentences
De-recognition of a tax benefit previously recognized results in the Fund recording a tax liability that reduces net assets.
−Removed: Based on its analysis, the Fund has determined that it has not incurred any liability for unrecognized tax benefits as of June 30, 2021 and for the years ended December 31, 2020, 2019 and 2018.
+Added: Based on its analysis, the Fund has determined that it has not incurred any liability for unrecognized tax benefits as of September 30, 2021 and for the years ended December 31, 2020, 2019 and 2018.
However, the Fund’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, ongoing analysis of and changes to tax laws, regulations, and interpretations thereof.
The Fund recognizes interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed.
−Removed: No interest expense or penalties have been recognized as of and for the three and six months ended June 30, 2021 and 2020.
+Added: No interest expense or penalties have been recognized as of and for the three and nine months ended September 30, 2021 and 2020.
The Fund may be subject to potential examination by U.S.
25 unchanged sentences
The Sponsor may invest a portion of the cash held by the broker in short term Treasury Bills as collateral for open futures contracts, which is classified as a cash equivalent and is not FDIC insured.
−Removed: June 30, 2021
−Removed: December 31, 2020
+Added: September 30,
Money Market Funds
2 unchanged sentences
Total cash and cash equivalents as presented on the Statement of Assets and Liabilities
+Added: Payable for Purchases of Commercial Paper
+Added: The amount recorded by the Fund for commercial paper transactions awaiting settlement, represents the amount payable for contracts purchased but not yet settled as of the reporting date.
+Added: The value of the contract is included in cash and cash equivalents, and the payable amount is included as a liability.
Due from/to Broker
44 unchanged sentences
Such expenses are primarily recorded as distribution and marketing fees in the financial statements of each Fund.
−Removed: Three months ended June 30, 2021
−Removed: Three months ended June 30, 2020
−Removed: Six months ended June 30, 2021
−Removed: Six months ended June 30, 2020
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Recognized Related Party Transactions
4 unchanged sentences
The Sponsor has determined that there will be no recovery sought for the amounts below in any future period:
−Removed: Three months ended June 30, 2021
−Removed: Three months ended June 30, 2020
−Removed: Six months ended June 30, 2021
−Removed: Six months ended June 30, 2020
+Added: Three months ended September 30, 2021
+Added: Three months ended September 30, 2020
+Added: Nine months ended September 30, 2021
+Added: Nine months ended September 30, 2020
Use of Estimates
29 unchanged sentences
When such a situation exists on a quarter close, the Sponsor will calculate the NAV on a particular day using the Level 1 valuation but will later recalculate the NAV for the impacted Fund based upon the valuation inputs from these alternative verifiable sources (Level 2 or Level 3) and will report such NAV in its applicable financial statements and reports.
−Removed: The determination is made as of the settlement of the futures contracts on the last day of trading for the reporting period.
−Removed: In making the determination of a Level 1 or Level 2 transfer, the Fund considers the average volume of the specific underlying futures contracts traded on the relevant exchange for the three months being reported.
−Removed: On June 30, 2021 and December 31, 2020, in the opinion of the Trust and the Fund, the reported value of the Wheat Futures Contracts traded on the CBOT fairly reflected the value of the Wheat Futures Contracts held by the Fund, and no adjustments were necessary.
+Added: On September 30, 2021 and December 31, 2020, in the opinion of the Trust and the Fund, the reported value of the Wheat Futures Contracts traded on the CBOT fairly reflected the value of the Wheat Futures Contracts held by the Fund, and no adjustments were necessary.
The determination is made as of the settlement of the futures contracts on the last day of trading for the reporting period.
15 unchanged sentences
The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-05:
+Added: “Leases (Topic 842).” Under the amended guidance, a lessor should classify and account for a lease with variable lease payments that don’t depend on an index or a rate as an operating lease if the lease would’ve been classified as a sales-type lease or a direct financing lease in accordance with the lease classification guidance in Topic 842 and the lessor would’ve otherwise recognized a day-one loss.
+Added: The amendment was adopted early for the quarter ended September 30, 2021;
+Added: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The FASB issued ASU 2020-10:
“Codification Improvements.” The amendment improves the disclosure guidance in appropriate Disclosure Sections, without resulting in changes to current GAAP.
The amendment is effective for annual periods beginning after December 15, 2020.
−Removed: The Sponsor is evaluating the impacts, but the amendment is not expected to have a material impact on the financial statements of the Trust or the Fund.
−Removed: The FASB issued Accounting Standards Update (“ASU”) 2020-02:
+Added: The amendment was adopted for the quarter ended March 31, 2021;
+Added: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The FASB issued 2020-02:
“Financial Instruments Credit Losses (Topic 326) and Leases (Topic 842):
3 unchanged sentences
The amendment updates and adds language to ASU 2016-02.
−Removed: The amendments were adopted for the quarter ended March 31, 2020;
−Removed: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The amendments were adopted for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
The FASB issued ASU 2020-01:
1 unchanged sentence
The amendments clarify the treatment of transactions that require a company to apply or discontinue the equity method of accounting.
−Removed: The amendments were adopted early for the quarter ended March 31, 2020;
−Removed: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The amendments were adopted early for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
The FASB issued ASU 2019-01:
21 unchanged sentences
The Fund’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in the Fund’s significant accounting policies in Note 3.
−Removed: The following table presents information about the Fund’s assets and liabilities measured at fair value as of June 30, 2021 and December 31, 2020:
−Removed: June 30, 2021
+Added: The following table presents information about the Fund’s assets and liabilities measured at fair value as of September 30, 2021 and December 31, 2020:
+Added: September 30, 2021
Balance as of
−Removed: June 30, 2021
+Added: September 30,
Cash Equivalents
1 unchanged sentence
Wheat futures contracts
−Removed: Balance as of June 30, 2021
−Removed: Commodity Futures Contracts
−Removed: Wheat futures contracts
December 31, 2020
3 unchanged sentences
Wheat futures contracts
−Removed: For the three months ended June 30, 2021 and year ended December 31, 2020, the Fund did not have any significant transfers between any of the levels of the fair value hierarchy, except for the Dec 21 CBOT Wheat contracts held by WEAT, which were reflected as a Level 2 asset for the period ended June 30, 2020 due to the quarterly average daily volume for the contract.
+Added: For the period ended September 30, 2021 and year ended December 31, 2020, the Fund did not have any significant transfers between any of the levels of the fair value hierarchy, except for the Dec21 CBOT Wheat contracts held by WEAT, which were reflected as a Level 2 asset for the period ended June 30, 2020 due to the quarterly average daily volume for the contract.
These transferred back to a Level 1 asset for the period ended September 30, 2020.
6 unchanged sentences
In addition to its primary underlying risks, the Fund is also subject to additional counterparty risk due to inability of its counterparties to meet the terms of their contracts.
−Removed: For the three and six months ended June 30, 2021 and for the year ended December 31, 2020, the Fund invested only in commodity futures contracts.
+Added: For the three and nine months ended September 30, 2021 and for the year ended December 31, 2020, the Fund invested only in commodity futures contracts.
Futures Contracts
14 unchanged sentences
Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.”
−Removed: 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 FCM, E D & F Man as of June 30, 2021 and December 31, 2020.
−Removed: Offsetting of Financial Assets and Derivative Assets as of June 30, 2021
+Added: The following table also identifies the fair value amounts of derivative instruments included in the combined statements of assets and liabilities as derivative contracts, categorized by primary underlying risk and held by the FCM, E D & F Man as of September 30, 2021 and December 31, 2020.
+Added: *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.
+Added: Offsetting of Financial Assets and Derivative Assets as of September 30, 2021
(iii) = (i)-(ii)
8 unchanged sentences
Wheat futures contracts
−Removed: Offsetting of Financial Liabilities and Derivative Liabilities as of June 30, 2021
−Removed: (iii) = (i)-(ii)
−Removed: (v)=(iii)-(iv)
−Removed: Gross Amount Not Offset in the Statement of Assets and Liabilities
−Removed: Gross Amount of Recognized Liabilities
−Removed: Gross Amount Offset in the Statement of Assets and Liabilities
−Removed: Net Amount Presented in the Statement of Assets and Liabilities
−Removed: Futures Contracts Available for Offset
−Removed: Collateral, Due from Broker
−Removed: Commodity Price
−Removed: Wheat futures contracts
Offsetting of Financial Assets and Derivative Assets as of December 31, 2020
10 unchanged sentences
The following tables identify the net gain and loss amounts included in the statements of operations as realized and unrealized gains and losses on trading of commodity futures contracts categorized by primary underlying risk:
−Removed: Three months ended June 30, 2021
+Added: Three months ended September 30, 2021
Realized Gain on Commodity Futures Contracts
2 unchanged sentences
Wheat futures contracts
−Removed: Three months ended June 30, 2020
−Removed: Realized Loss on Commodity Futures Contracts
−Removed: Net Change in Unrealized Depreciation on Commodity Futures Contracts
+Added: Three months ended September 30, 2020
+Added: Realized Gain on Commodity Futures Contracts
+Added: Net Change in Unrealized Appreciation on Commodity Futures Contracts
Commodity Price
Wheat futures contracts
−Removed: $ ( 285,793 )
−Removed: $ ( 5,884,890 )
−Removed: Six months ended June 30, 2021
+Added: Nine months ended September 30, 2021
Realized Gain on Commodity Futures Contracts
3 unchanged sentences
$ ( 1,199,756 )
−Removed: Six months ended June 30, 2020
+Added: Nine months ended September 30, 2020
Realized Gain on Commodity Futures Contracts
4 unchanged sentences
Volume of Derivative Activities
−Removed: The average notional market value categorized by primary underlying risk for all futures contracts held was $ 87.9 million and $ 84.2 million, respectively, for the three and six months ended June 30, 2021, and $ 47.4 million and $ 48.3 million, respectively, for the three and six months ended and June 30, 2020.
+Added: The average notional market value categorized by primary underlying risk for all futures contracts held was $ 76.0 million and $ 80.3 million, respectively, for the three and nine months ended September 30, 2021, and $ 58.3 million and $ 51.9 million, respectively, for the three and nine months ended and September 30, 2020.
Note 6 – Financial Highlights
−Removed: The following tables present per unit performance data and other supplemental financial data for the three and six months ended June 30, 2021 and 2020.
+Added: The following tables present per unit performance data and other supplemental financial data for the three and nine months ended September 30, 2021 and 2020.
This information has been derived from information presented in the financial statements and is presented with total expenses gross of expenses waived by the Sponsor and with total expenses net of expenses waived by the Sponsor, as appropriate.
−Removed: Three months ended
−Removed: Three months ended
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Per Share Operation Performance
15 unchanged sentences
Note 8 – Subsequent Events
−Removed: Management has evaluated the financial statements for the quarter-ended June 30, 2021 for subsequent events through the date of this filing and noted no material events requiring either recognition through the date of the filing or disclosure herein for the Fund other than those noted below:
−Removed: The continued uncertainty over the path of COVID-19 may continue to be highly disruptive to economies and markets.
+Added: Management has evaluated the financial statements for the quarter-ended September 30, 2021 for subsequent events through the date of this filing and noted no material events requiring either recognition through the date of the filing or disclosure herein for the Fund other than those noted below:
+Added: The continued uncertainty of COVID-19 may continue to be highly disruptive to economies and markets.
The impact of COVID-19 to the Fund is described in more detail in Part 2 of this 10-Q.
1 unchanged sentence
STATEMENTS OF ASSETS AND LIABILITIES
−Removed: June 30, 2021
−Removed: December 31, 2020
+Added: September 30,
Cash equivalents
Equity in trading accounts:
−Removed: Investments in securities, at fair value (cost $ 8,960,682 and $ 1,586,899 as of June 30, 2021 and December 31, 2020, respectively)
+Added: Investments in securities, at fair value (cost $ 7,335,496 and $ 1,586,899 as of September 30, 2021 and December 31, 2020, respectively)
Other liabilities
6 unchanged sentences
SCHEDULE OF INVESTMENTS
−Removed: June 30, 2021
+Added: September 30, 2021
Percentage of
25 unchanged sentences
STATEMENTS OF OPERATIONS
−Removed: Three months ended
−Removed: Three months ended
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Realized and unrealized gain (loss) on trading of securities:
−Removed: Realized loss on securities
−Removed: $ ( 240,268 )
+Added: Realized gain (loss) on securities
$ ( 332,299 )
19 unchanged sentences
STATEMENTS OF CHANGES IN NET ASSETS
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
Net income (loss)
3 unchanged sentences
Redemption of Shares
+Added: ( 2,267,271 )
Total capital transactions
9 unchanged sentences
STATEMENTS OF CASH FLOWS
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
Cash flows from operating activities:
1 unchanged sentence
$ ( 115,875 )
−Removed: Adjustments to reconcile net income (loss) to net cash used in operating activities:
+Added: Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Net change in unrealized appreciation on securities
4 unchanged sentences
Interest receivable
−Removed: Receivable for investments sold
Other liabilities
−Removed: Net cash used in operating activities
+Added: Net cash (used in) provided by operating activities
( 5,737,940 )
2 unchanged sentences
Redemption of Shares
−Removed: Net cash provided by financing activities
−Removed: Net change in cash and cash equivalents
−Removed: Cash and cash equivalents, beginning of period
−Removed: Cash and cash equivalents, end of period
+Added: ( 2,267,271 )
+Added: Net cash provided by (used in) financing activities
+Added: Net change in cash equivalents
+Added: Cash equivalents, beginning of period
+Added: Cash equivalents, end of period
The accompanying notes are an integral part of these financial statements.
NOTES TO FINANCIAL STATEMENTS
−Removed: June 30, 2021
+Added: September 30, 2021
Note 1 – Organization and Operation
38 unchanged sentences
It is suggested that these interim financial statements be read in conjunction with the financial statements and related notes included in the Trust’s Annual Report on Form 10-K, as well as the most recent Form S-1 filing, as applicable.
−Removed: The operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021.
+Added: The operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021.
Subject to the terms of the Trust Agreement, Teucrium Trading, LLC, in its capacity as the Sponsor (“Sponsor”), may terminate a Fund at any time, regardless of whether the Fund has incurred losses, including, for instance, if it determines that the Fund’s aggregate net assets in relation to its operating expenses make the continued operation of the Fund unreasonable or imprudent.
43 unchanged sentences
A summary of these expenses is included below:
−Removed: Three months ended June 30, 2021
−Removed: Three months ended June 30, 2020
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: Six months ended
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Amount Recognized for Custody Services
13 unchanged sentences
All such transactions are recorded on the identified cost basis and marked to market daily.
−Removed: Unrealized appreciation or depreciation on investments are reflected in the statements of assets and liabilities as the difference between the original amount and the fair market value as of the last business day of the year or as of the last date of the financial statements.
−Removed: Beginning on August 21, 2019, brokerage commission expenses were recognized on a per-trade basis.
−Removed: The half-turn is recognized as an unrealized loss on the statements of operations for contracts that have been purchased since the change in recognition, and a full turn is recognized as a realized loss on the statements of operations when a contract is sold.
+Added: Unrealized appreciation or depreciation on investments are reflected in the statements of operations as the difference between the original amount and the fair market value as of the last business day of the year or as of the last date of the financial statements.
Changes in the appreciation or depreciation between periods are reflected in the statements of operations.
16 unchanged sentences
This policy has been applied to all existing tax positions upon the Fund’s initial adoption.
−Removed: Based on its analysis, the Fund has determined that it has not incurred any liability for unrecognized tax benefits as of June 30, 2021 and for the years ended December 31, 2020, 2019 and 2018.
+Added: Based on its analysis, the Fund has determined that it has not incurred any liability for unrecognized tax benefits as of September 30, 2021 and for the years ended December 31, 2020, 2019 and 2018.
However, the Fund’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, ongoing analysis of and changes to tax laws, regulations, and interpretations thereof.
The Fund recognizes interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed.
−Removed: No interest expense or penalties have been recognized as of and for the three and six months ended June 30, 2021 and 2020.
+Added: No interest expense or penalties have been recognized as of and for the three and nine months ended September 30, 2021 and 2020.
The Fund may be subject to potential examination by U.S.
24 unchanged sentences
Assets deposited with a financial institution may, at times, exceed federally insured limits.
−Removed: TAGS had a balance of $1,946 and $2,786 in money market funds at June 30, 2021 and December 31, 2020, respectively;
+Added: TAGS had a balance of $ 4,754 and $ 2,786 in money market funds at September 30, 2021 and December 31, 2020, respectively;
these balances are included in cash equivalents on the statements of assets and liabilities.
31 unchanged sentences
All asset-based fees and expenses for the Funds are calculated on the prior day’s net assets.
−Removed: Three months ended June 30, 2021
−Removed: Three months ended June 30, 2020
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: Six months ended
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Recognized Related Party Transactions
4 unchanged sentences
The Sponsor has determined that there will be no recovery sought for the amounts below in any future period:
−Removed: Three months ended June 30, 2021
−Removed: Three months ended June 30, 2020
−Removed: Six months ended June 30, 2021
−Removed: Six months ended June 30, 2020
+Added: Three months ended September 30, 2021
+Added: Three months ended September 30, 2020
+Added: Nine months ended September 30, 2021
+Added: Nine months ended September 30, 2020
Expenses are recorded using the accrual method of accounting.
4 unchanged sentences
The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-05:
+Added: “Leases (Topic 842).” Under the amended guidance, a lessor should classify and account for a lease with variable lease payments that don’t depend on an index or a rate as an operating lease if the lease would’ve been classified as a sales-type lease or a direct financing lease in accordance with the lease classification guidance in Topic 842 and the lessor would’ve otherwise recognized a day-one loss.
+Added: The amendment was adopted early for the quarter ended September 30, 2021;
+Added: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The FASB issued ASU 2020-10:
“Codification Improvements.” The amendment improves the disclosure guidance in appropriate Disclosure Sections, without resulting in changes to current GAAP.
The amendment is effective for annual periods beginning after December 15, 2020.
−Removed: The Sponsor is evaluating the impacts, but the amendment is not expected to have a material impact on the financial statements of the Trust or the Fund.
−Removed: The FASB issued Accounting Standards Update (“ASU”) 2020-02:
+Added: The amendment was adopted for the quarter ended March 31, 2021;
+Added: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The FASB issued 2020-02:
“Financial Instruments Credit Losses (Topic 326) and Leases (Topic 842):
3 unchanged sentences
The amendment updates and adds language to ASU 2016-02.
−Removed: The amendments were adopted for the quarter ended March 31, 2020;
−Removed: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The amendments were adopted for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
The FASB issued ASU 2020-01:
1 unchanged sentence
The amendments clarify the treatment of transactions that require a company to apply or discontinue the equity method of accounting.
−Removed: The amendments were adopted early for the quarter ended March 31, 2020;
−Removed: the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
+Added: The amendments were adopted early for the quarter ended March 31, 2020; the adoption did not have a material impact on the financial statements and disclosures of the Trust or the Fund.
The FASB issued ASU 2019-01:
38 unchanged sentences
In such cases, for disclosure purposes, the level in the fair value hierarchy, within which the fair value measurement in its entirety falls, is determined based on the lowest level input that is significant to the fair value measurement.
−Removed: On June 30, 2021 the reported value at the close of the market for each commodity contract fairly reflected the value of the futures and no alternative valuations were required, except for the Sep21 and Dec21 CBOT corn futures contracts, which settled in a “limit up” condition on June 30, 2021.
−Removed: Therefore, the Trust and CORN have used alternative verifiable sources to value these contracts on June 30, 2021, and the financial statements of these funds including TAGS, due to the NAV adjustments for the Underlying Fund, have been adjusted accordingly.
−Removed: The adjustment in CORN has resulted in a $10,393 increase in the investment in the Underlying Funds and have classified these as a Level 2 asset for the period ended June 30, 2021.
−Removed: The determination is made as of the settlement of the futures contracts on the last day of trading for the reporting period.
+Added: On September 30, 2021 and December 32, 2020, the reported value at the close of the market for each commodity contract fairly reflected the value of the futures and no alternative valuations were required.
+Added: For the quarter ended June 30, 2021, Corn Futures Contracts for the Sep21 and Dec21 CBOT corn futures contracts, settled in a “limit up” condition on June 30, 2021.
+Added: Therefore, the Trust and CORN have used alternative verifiable sources to value these contracts on June 30, 2021, and the financial statements of these funds including TAGS, due to the NAV adjustments for the Underlying Fund, were adjusted accordingly.
+Added: The adjustment in CORN resulted in a $ 10,393 increase in the investment in the Underlying Funds which were classified as a Level 2 asset for the period ended June 30, 2021.
+Added: For the period ended September 30, 2021, the CORN shares were classified as a Level 1 asset.
For the quarter ended March 31, 2021 Corn Futures Contracts for Jul21 CBOT corn futures, Sep21 CBOT corn futures, Dec21 CBOT corn futures, and Soybean Futures Contracts for Jul21 CBOT soybean futures, and the Nov21 CBOT soybean futures, settled in a “limit up” condition.
3 unchanged sentences
For the period ended June 30, 2021, the SOYB shares were classified as a Level 1 asset.
−Removed: The CORN shares remained a Level 2 asset as described above.
Net Income (Loss) per Share
4 unchanged sentences
The Fund’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in the Fund’s significant accounting policies in Note 3.
−Removed: The following table presents information about the Fund’s assets and liabilities measured at fair value as of June 30, 2021 and December 31, 2020:
−Removed: June 30, 2021
+Added: The following table presents information about the Fund’s assets and liabilities measured at fair value as of September 30, 2021 and December 31, 2020:
+Added: September 30, 2021
Balance as of
−Removed: June 30, 2021
+Added: September 30,
Exchange Traded Funds
4 unchanged sentences
Cash Equivalents
−Removed: On June 30, 2021 the reported value at the close of the market for each commodity contract fairly reflected the value of the futures and no alternative valuations were required, except for the Sep21 and Dec21 CBOT corn futures contracts which settled in a “limit up” condition on June 30, 2021.
−Removed: Therefore, the Trust and CORN have used alternative verifiable sources to value these contracts on June 30, 2021, and the financial statements of these funds including TAGS, due to the NAV adjustments for each of the impacted Underlying Funds have been adjusted accordingly.
−Removed: The adjustment in CORN has resulted in a $10,383 increase in the investment of the Underlying Funds due to the increase in unrealized gain in the Corn Fund, and have classified these Corn Fund shares as a Level 2 asset for the period ended June 30, 2021 due to the updated Corn Fund NAV.
−Removed: The determination is made as of the settlement of the futures contracts on the last day of trading for the reporting period.
+Added: On September 30, 2021 and December 31, 2020, the reported value at the close of the market for each commodity contract fairly reflected the value of the futures and no alternative valuations were required., The determination is made as of the settlement of the futures contracts on the last day of trading for the reporting period.
+Added: For the quarter ended June 30, 2021, Corn Futures Contracts for the Sep21 and Dec21 CBOT corn futures contracts settled in a “limit up” condition.
+Added: Accordingly, the Trust and CORN classified these as Level 2 assets.
+Added: The financial statements of these funds including TAGS, due to the NAV adjustments for each of the impacted Underlying Funds were adjusted accordingly.
+Added: The adjustment in CORN resulted in a $10,383 increase in the investment of the Underlying Funds due to the increase in unrealized gain in the Corn Fund, and classified these Corn Fund shares as a Level 2 asset for the period ended June 30, 2021 .
+Added: For the period ended September 30, 2021, the CORN shares were classified as a Level 1 asset.
For the quarter ended March 31, 2021 Corn Futures Contracts for Jul21 CBOT corn futures, Sep21 CBOT corn futures, Dec21 CBOT corn futures, and Soybean Futures Contracts for Jul21 CBOT soybean futures, and the Nov21 CBOT soybean futures, settled in a “limit up” condition.
7 unchanged sentences
Note 5 – Financial Highlights
−Removed: The following table presents per unit performance data and other supplemental financial data for the three and six months ended June 30, 2021 and 2020.
+Added: The following table presents per unit performance data and other supplemental financial data for the three and nine months ended September 30, 2021 and 2020.
This information has been derived from information presented in the financial statements and is presented with total expenses gross of expenses waived by the Sponsor and with total expenses net of expenses waived by the Sponsor, as appropriate.
−Removed: Three months ended
−Removed: Three months ended
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2021
−Removed: June 30, 2020
−Removed: June 30, 2021
−Removed: June 30, 2020
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Per Share Operation Performance
14 unchanged sentences
Note 7 – Subsequent Events
−Removed: Management has evaluated the financial statements for the quarter-ended June 30, 2021 for subsequent events through the date of this filing and noted no material events requiring either recognition through the date of the filing or disclosure herein for the Fund other than those noted below:
−Removed: The continued uncertainty over the path of COVID-19 may continue to be highly disruptive to economies and markets.
+Added: Management has evaluated the financial statements for the quarter-ended September 30, 2021 for subsequent events through the date of this filing and noted no material events requiring either recognition through the date of the filing or disclosure herein for the Fund other than those noted below:
+Added: The continued uncertainty of COVID-19 may continue to be highly disruptive to economies and markets.
The impact of COVID-19 to the Fund is described in more detail in Part 2 of this 10-Q.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.