Cedears: ETFs Replicating Soybeans and Corn to Be Added to the Market

The Cedears menu will add two new instruments directly linked to the international prices of major grains. These are the certificates of the Teucrium Corn Fund (CORN) and Teucrium Soybean Fund (SOYB), U.S. funds that track the evolution of corn and soybeans through futures contracts traded in Chicago.

This new offering expands the alternatives for investors and companies looking to gain financial exposure to the agricultural complex in dollars, without directly trading futures. It also introduces a new tool compared to the options available in A3, although with significant differences in terms of coverage, liquidity, and currency treatment. In particular, since they are Cedears, they are not compatible with the MULC for legal entities, which is a relevant point for agricultural companies.

What are the new Cedears and how do they work?

The Teucrium Corn Fund (CORN) will enter with a ratio of 4 Cedears for each share of the ETF and aims to follow the price evolution of corn through futures contracts traded on the Chicago Board of Trade.

The fund does not buy physical corn or shares of agricultural companies. Instead, it distributes its exposure among three futures contracts with different expiration dates: approximately 35% in December 2026, 30% in March 2027, and 35% in December 2027, while maintaining cash and equivalents as backing for those positions. This way, it avoids concentrating solely on the nearest contract and spreads the risk across different points on the curve.

This structure implies that CORN does not exactly replicate the spot price of the grain. Its performance depends on both the evolution of corn and the shape of the futures curve, as well as the price differences between the contracts it holds and those it must renew as expiration dates approach.

The Teucrium Soybean Fund (SOYB), which will arrive with a ratio of 5 to 1, uses a similar logic to track the evolution of soybeans. Its portfolio is also distributed among three futures traded in Chicago, with about 35% in November 2026, 30% in January 2027, and 35% in November 2027, in addition to the cash used as collateral for those positions.

In both cases, therefore, the investor gains financial exposure to the international price of the grain and to different segments of its futures curve, without needing to trade derivatives directly or manage the guarantees required by that market.

On Wall Street, both funds have shown positive returns over the past year, although with differences. CORN has accumulated nearly 15% over twelve months, while SOYB has advanced more than 20%, in line with the movements of the grains. However, over longer horizons, their results are more moderate, partly because the periodic renewal of contracts can add or subtract performance depending on how the futures curve is configured.

For this reason, CORN and SOYB primarily appear as instruments for tactical exposure, diversification, or financial hedging, rather than as a traditional long-term investment. Their performance does not solely depend on the price movements of corn or soybeans, but also on how the various maturities that make up each portfolio evolve.{#p-1787868511269-12419}

CORN and SOYB allow tracking the international prices of corn and soybeans through a futures portfolio with different maturities.{#p-1787869233042-28335}

What is happening with soybeans and corn {#p-1787869022294-62856}

The arrival of these instruments occurs at a time of recovery in agricultural prices, although with different fundamentals for each grain. Soybeans have accumulated an improvement of nearly 20% so far this year, while corn has advanced around 13%, according to Delphos Investment.{#p-1787869022294-75919}

According to the consultancy, the movement is framed within a combination of climatic problems, geopolitical tensions, and logistical difficulties that have also driven wheat with much greater force.{#p-1787869022294-27565}

In the case of soybeans, one of the main supporting factors has been the acceleration of Chinese demand. In this regard, the Rosario Stock Exchange noted that China went from representing only 7% of the soybean commitments for 2026/27 at the beginning of July to explaining 48% by mid-August, with 5.69 million tons purchased.{#p-1787869022294-6504}

At the same time, the Argentine market arrives with a 2025/26 harvest estimated by GEA-BCR at 51.5 million tons, while for the next campaign, around 48 million tons are projected.{#p-1787869022294-39096}

In corn, Argentine supply has also reached high levels. The BCR raised its estimate for the 2025/26 campaign to 70.5 million tons, while July marked a historical record for exports. For 2026/27, however, the entity projects a production close to 66 million tons, with a reduction in the planted area.{#p-1787869022294-34582}

Meanwhile, the latest USDA (United States Department of Agriculture) projections reinforced a different scenario for each crop**.** For corn, the agency raised the global production estimate but cut the final stocks in the United States, which supported prices by showing a tighter domestic balance. In soybeans, on the other hand, the larger projected supply and a more ample level of stocks limited part of the upward momentum.{#p-1787869022294-1830}

Thus, although both grains are recovering, corn finds clearer support today in the relationship between supply and demand, while soybeans face a greater ceiling due to the expected abundance for the 2026/27 campaign.{#p-1787869022294-77606}

This is compounded by climatic factors in the United States and Europe, along with the difficulties associated with the war between Russia and Ukraine and the transportation of grains from the Black Sea region. For Delphos, this combination constitutes "another positive external shock for our country", as Argentina comes from campaigns with high productions and now adds better international prices.{#p-1787869022294-27392}

The closure of Ormuz added tension to global logistics and reinforced pressure on commodity markets.{#p-1787925064880-55328}

Coverage and Investment: An Alternative to Futures and Options {#p-1787869612901-28016}

The arrival of CORN and SOYB incorporates a new way to take positions on the international price of corn and soybeans from the local market. Unlike traditional futures and options, these instruments allow access to grains through Cedears, with a logic closer to that of a financial investment than to direct productive coverage.{#p-1787869612901-79931}

In Argentina, the agricultural derivatives market already has significant development through A3 Mercados. In 2025, nearly 89.6 million tons of grains were traded through futures and options, a historical record and approximately 35% more than the previous year. Soybeans accounted for 51.3 million tons, followed by corn with 27.9 million and wheat with 10.4 million.{#p-1787869612901-70137}

This growth is also reflected in the new campaign. By mid-August, sales of corn 2026/27 reached 2.14 million tons, with about 70% already traded at a firm price, while the April contract touched u$s199 per ton, its highest since the start of trading.{#p-1787869612901-12469}

The main difference lies in the type of coverage each instrument offers. A3 futures and options allow for more direct coverage of the price of Argentine production, as they are linked to local contracts and, in certain cases, contemplate physical delivery.{#p-1787869612901-75978}

For a producer looking to fix the value of a future harvest, that match between the financial contract and the asset they actually market remains a relevant advantage.{#p-1787869612901-68598}

CORN and SOYB, on the other hand, allow exposure to the international grain market through a Cedear. This means that their price in pesos depends on two variables: on one hand, the evolution of the ETF on Wall Street and, on the other, the implicit exchange rate of the Cedears.{#p-1787869612901-34962}

In this way, in addition to following the movements of corn or soybeans, they can provide a certain degree of coverage against a rise in the financial dollar.{#p-1787869612901-91336}

This double exposure is one of their main characteristics. If the international grain price rises and at the same time the financial dollar increases, both movements can enhance the value of the Cedear in pesos. Conversely, a drop in the ETF can offset part of the exchange rate effect, so it is not a pure coverage of either the commodity or the dollar.{#p-1787869612901-25073}

Moreover, Cedears offer a simpler operation for certain investors, as they do not require managing guarantees or daily margins typical of the futures market.{#p-1787869612901-85724}

Therefore, rather than competing directly with A3, CORN and SOYB appear as complementary instruments. Futures remain more precise for covering local production, while the new Cedears expand the alternatives for those looking to combine exposure to agricultural commodities, international diversification, and coverage against the financial dollar.