The pivotal month in the index, the month in which the ETP is always invested. For CANE, that month is March.
A market condition in which a futures price is lower in the distant delivery months than in the near delivery months.
The midpoint between the highest bid and the lowest offer on the listing exchange as of the time that the Fund’s NAV is calculated.
Cleared Sugar Swap
A sugar-based swap agreement that is cleared through ICE Futures or its affiliated provider of clearing services.
The 4 p.m. ET closing price of the shares of the Fund as reported on the NYSE Arca.
Commodity Futures Trading Commission (CFTC)
The federal agency created by Congress in 1975 to regulate futures trading and protect participants against manipulation and fraud, through its administration of the Commodities Exchange Act.
An enterprise in which several individuals contribute funds in order to trade futures or futures options collectively. Commodity pools are analogous to mutual funds in that many investors pool their assets to gain the power to make trades that they could not make individually. Additional benefits include bypassing margin requirements and limiting risk to the amount invested in the pool.
A condition in which distant delivery prices for futures exceed spot prices, often due to the costs of storing and insuring the underlying commodity, the opposite of backwardation.
The minimum number of shares of an exchange-traded product (ETP) that will be delivered to an Authorized Purchaser (AP) in exchange for the predefined basket of securities underlying the ETP’s securities, known as a Creation Basket. The shares can also be sold back in a predefined basket to the ETP; this process is called a Redemption Basket.
A standardized contract between two parties to buy or sell a specified asset of standardized quantity and quality at a specified future date at a price agreed today (the futures price).
ICE or Intercontinental Exchange
ICE Futures is the primary exchange on which Sugar Futures Contracts are traded in the U.S.
Intraday Indicative Value
An Intraday Indicative Value is published by NYSE Alternext US for each ETP as a reference value to be used in conjunction with other ETP market information. The Intraday Indicative Value for an ETP is typically published under a separate symbol every 15 seconds over the Consolidated Tape and calculated throughout the trading day based on the last sale prices of the securities specified for creation and redemption plus any estimated cash amounts associated with the creation unit, all on a per-ETP share basis. This value is also referred to as an “Underlying Trading Value,” “Indicative Optimized Portfolio Value (IOPV),” and “Intraday Value” in various places such as the prospectus and marketing materials for different ETPs. The Intraday Indicative Value is designed to give investors a sense of the relationship between a basket of securities that are representative of those owned in the ETP and the share price of the ETP on an intraday basis.
The ability of an asset to be converted into cash quickly and without any price discount.
The amount of equity required for an investment in futures contracts.
The current price at which an asset or service can be bought or sold.
National Futures Association (NFA)
The private-sector, self-regulatory agency of the futures industry, established in 1981.
Net Asset Value (NAV)
An exchange-traded product’s (ETP) per-share value. The per-share dollar amount of the Fund is calculated by dividing the total value of all the securities in its portfolio, less any liabilities, by the number of Fund Shares outstanding.
The amount (stated in dollars or percent) by which the selling or purchase price of an ETP is greater than (Premium) or less than (Discount) its face amount/value or Net Asset Value (NAV).
When an investor replaces an existing futures position with a new one having a later expiration date.
The nearest calendar month traded for that commodity future contract.
Teucrium Sugar or TCANE Index
A weighted average of daily changes in the closing settlement prices of (1) the second-to-expire Sugar No.11 Futures Contract traded on ICE Futures, weighted 35%, (2) the third-to-expire Sugar No.11 Futures Contract, weighted 30%, and (3) the Sugar No.11 Futures Contract expiring in the March following the expiration month of the third-to-expire contract, weighted 35%. To convert to an index, 100 is set to $25, the opening day price of CANE.
According to Dictionary.com, Teucrium (pronounced two-cree-um) “is a large, widely distributed genus of perennial herbs, shrubs, or subshrubs native to the Mediterranean region to western Asia.” We named our firm Teucrium because, according to the Roman poet Horace, the Greek god Teucer, prior to setting sail for Cyprus, told his followers, “We will set sail upon the vast ocean,” a feeling which we believe symbolizes the “voyage of discovery” upon which all of us at Teucrium are embarking each day.
The extent to which investors have ready access to any required financial information. For the Teucrium Sugar Fund, holdings and the Net Asset Value (NAV) are reported on the website daily.
Weighted Average Price
The weighted average price is reflected on the Holdings page when there are multiple fill prices for the purchase or sale of a specific commodity contract on a given day. The calculation is as follows: [Absolute value of (dollar value of contracts bought minus dollar value of contracts sold)] divided by [net number of contracts bought or sold].