Teucrium Trust Narrows Losses Amidst Shifting Commodity Markets

TL;DR

**WEAT's losses are shrinking, but the fund is shrinking too – proceed with caution.**

AI Summary

Teucrium Commodity Trust (WEAT) reported a net loss of $22,813,701 for the nine months ended September 30, 2025, a significant improvement from the $34,492,480 net loss in the prior year period. This improvement was primarily driven by a reduced realized loss on commodity futures contracts, which decreased from $40,897,827 in 2024 to $30,908,897 in 2025. However, interest income also saw a notable decline, falling from $10,273,773 to $6,758,274. The Trust's total assets decreased from $241,695,254 at December 31, 2024, to $220,541,682 at September 30, 2025, while net assets declined from $224,647,418 to $211,541,516 over the same period. Cash and cash equivalents also decreased from $210,940,353 to $204,250,828. The Teucrium Wheat Fund remains the largest component with 28,525,004 shares outstanding as of November 7, 2025, reflecting its dominant position within the Trust's offerings.

Why It Matters

For investors, WEAT's reduced net loss, despite declining interest income, suggests a potential stabilization in its core commodity trading operations. The significant decrease in total assets and net assets, however, indicates a contraction in the fund's overall size, which could impact liquidity and trading volumes. The competitive landscape for commodity ETFs is fierce, and WEAT's performance against its peers in a volatile agricultural market will be key. Employees and customers are indirectly affected by the fund's stability and ability to attract new capital, which underpins its operational viability and market presence.

Risk Assessment

Risk Level: medium — The Trust reported a net loss of $22,813,701 for the nine months ended September 30, 2025, indicating ongoing operational losses. Furthermore, total assets decreased by over $21 million from $241,695,254 at December 31, 2024, to $220,541,682 at September 30, 2025, reflecting a shrinking asset base which can impact future performance and liquidity.

Analyst Insight

Investors should closely monitor the trend in realized and unrealized gains/losses on commodity futures, as this is the primary driver of the Trust's profitability. Given the declining asset base and continued net losses, a cautious approach is warranted; consider if the reduced losses signal a turnaround or merely a less severe downturn in a volatile sector.

Financial Highlights

total Assets

$220,541,682

net Income

-$22,813,701

cash Position

$204,250,828

Key Numbers

• $22.8M — Net Loss (Nine months ended Sep 30, 2025, improved from $34.5M loss in 2024)
• $211.5M — Net Assets (As of Sep 30, 2025, down from $224.6M at Dec 31, 2024)
• $204.2M — Cash & Cash Equivalents (As of Sep 30, 2025, down from $210.9M at Dec 31, 2024)
• $30.9M — Realized Loss on Futures (Nine months ended Sep 30, 2025, improved from $40.9M loss in 2024)
• $6.7M — Interest Income (Nine months ended Sep 30, 2025, down from $10.3M in 2024)
• 28,525,004 — Teucrium Wheat Fund Shares (Outstanding as of Nov 7, 2025, largest component)
• $16.1M — Total Equity in Trading Accounts (As of Sep 30, 2025, down from $30.5M at Dec 31, 2024)
• $9.0M — Total Liabilities (As of Sep 30, 2025, down from $17.0M at Dec 31, 2024)

Key Players & Entities

• Teucrium Commodity Trust (company) — registrant
• Teucrium Wheat Fund (company) — largest component fund
• Teucrium Corn Fund (company) — component fund
• Teucrium Sugar Fund (company) — component fund
• Teucrium Soybean Fund (company) — component fund
• Teucrium Agricultural Fund (company) — component fund
• SEC (regulator) — filing authority
• $22,813,701 (dollar_amount) — net loss for nine months ended September 30, 2025
• $34,492,480 (dollar_amount) — net loss for nine months ended September 30, 2024
• $211,541,516 (dollar_amount) — net assets as of September 30, 2025

FAQ

Risk Factors

• Commodity Price Volatility [high — market]: The Trust's performance is directly tied to the price movements of the underlying commodities, primarily wheat, corn, soybeans, and sugar. Significant price declines in these commodities can lead to substantial realized losses, as seen in the $30,908,897 realized loss on commodity futures contracts for the nine months ended September 30, 2025. This volatility poses a direct risk to the Trust's net asset value.
• Interest Rate Sensitivity [medium — market]: The Trust holds significant cash and cash equivalents, generating interest income. A decline in interest rates, as evidenced by the drop from $10,273,773 in interest income in the prior year period to $6,758,274 for the nine months ended September 30, 2025, can negatively impact the Trust's overall returns and offset gains or losses from commodity trading.
• Reliance on Third-Party Service Providers [medium — operational]: The Trust relies on various third-party service providers, including the commodity futures commission merchant, custodian, and administrator. Any failure, error, or misconduct by these parties could adversely affect the Trust's operations, assets, and reputation. The Trust's financial statements do not detail specific operational risks related to these providers.
• Asset and Net Asset Decline [medium — financial]: Total assets decreased from $241,695,254 at December 31, 2024, to $220,541,682 at September 30, 2025. Similarly, net assets declined from $224,647,418 to $211,541,516 over the same period. This reduction in asset base and net assets could indicate investor redemptions or market depreciation, impacting the Trust's scale and operational efficiency.
• Regulatory Changes in Commodity Markets [low — regulatory]: Changes in regulations governing commodity futures markets, trading, or the structure of commodity trusts could impact the Trust's ability to operate or its investment strategies. While no specific regulatory changes are detailed as current risks, the evolving nature of financial regulation presents an ongoing concern.

Industry Context

The commodity trust sector is characterized by its direct exposure to the price fluctuations of underlying physical commodities. Performance is heavily influenced by global supply and demand dynamics, geopolitical events, weather patterns, and macroeconomic factors. Competition exists among various commodity-focused ETFs and trusts, each employing different strategies and targeting specific commodity baskets.

Regulatory Implications

As a commodity pool operator, Teucrium is subject to regulations by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). Changes in these regulatory frameworks, particularly concerning derivatives trading or fund structures, could impact operational requirements and investment strategies. Compliance with reporting and disclosure rules is paramount.

What Investors Should Do

1. Monitor commodity price trends, particularly for wheat, corn, and soybeans, as these directly impact realized gains/losses and overall Trust performance.
2. Assess the Trust's ability to manage realized losses on futures contracts, given the $30.9M loss reported for the nine-month period.
3. Evaluate the impact of declining interest income on total returns, considering the drop from $10.3M to $6.7M year-over-year.
4. Consider the overall trend of declining assets and net assets, which may signal investor sentiment or market depreciation.
5. Review the Trust's holdings and diversification strategy, especially given the significant concentration in the Teucrium Wheat Fund.

Glossary

Commodity Futures Contracts

These are standardized legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future. They are used for hedging and speculation. (The Trust invests in these contracts, and realized gains or losses from them are a primary driver of the Trust's financial performance, as seen in the $30.9M realized loss for the nine months ended Sep 30, 2025.)

Net Assets

The total value of a company's assets minus its total liabilities. For a fund, it represents the value available to shareholders. (The Trust's net assets decreased from $224.6M at the end of 2024 to $211.5M as of Sep 30, 2025, indicating a reduction in shareholder value or capital.)

Cash and Cash Equivalents

Highly liquid short-term investments that can be readily converted into cash. This includes money market accounts and short-term government bonds. (The Trust's cash position decreased from $210.9M to $204.2M, reflecting operational activities and potential asset allocation shifts.)

Realized Loss

A loss that occurs when an asset is sold for less than its purchase price. In the context of futures, it's the loss from closing out a futures contract position. (The Trust reported a realized loss of $30,908,897 for the nine months ended Sep 30, 2025, a key factor in the overall net loss.)

Interest Income

Income generated from holding interest-bearing assets, such as cash deposits or short-term debt instruments. (Interest income declined significantly from $10.3M to $6.7M, impacting the Trust's total earnings.)

Teucrium Wheat Fund

A specific fund managed by Teucrium that focuses on wheat futures contracts. (It is the largest component of the Teucrium Commodity Trust, with 28,525,004 shares outstanding as of Nov 7, 2025, highlighting its importance to the Trust's overall performance.)

Year-Over-Year Comparison

For the nine months ended September 30, 2025, Teucrium Commodity Trust reported a net loss of $22.8 million, a notable improvement from the $34.5 million net loss in the same period of 2024. This improvement was driven by a reduction in realized losses on commodity futures contracts, which fell from $40.9 million to $30.9 million. However, interest income also decreased significantly, from $10.3 million to $6.7 million, partially offsetting the gains from reduced futures losses. Total assets and net assets have both declined since the end of the previous fiscal year.

Filing Documents

• tags20250930_10q.htm (10-Q) — 5529KB
• ex_856240.htm (EX-31.1) — 13KB
• ex_856241.htm (EX-31.2) — 13KB
• ex_856242.htm (EX-32.1) — 4KB
• ex_856243.htm (EX-32.2) — 4KB
• canaum092025.jpg (GRAPHIC) — 86KB
• cornaum092025.jpg (GRAPHIC) — 75KB
• corncons092025.jpg (GRAPHIC) — 55KB
• cornprice092025.jpg (GRAPHIC) — 58KB
• cornyield092025.jpg (GRAPHIC) — 59KB
• soybaum092025.jpg (GRAPHIC) — 76KB
• soybprice2025.jpg (GRAPHIC) — 65KB
• sugar2025.jpg (GRAPHIC) — 41KB
• tagsaum092025.jpg (GRAPHIC) — 90KB
• whtaum092025.jpg (GRAPHIC) — 84KB
• whtprice092025.jpg (GRAPHIC) — 68KB
• 0001437749-25-034040.txt ( ) — 29005KB
• weat-20250930.xsd (EX-101.SCH) — 102KB
• weat-20250930_cal.xml (EX-101.CAL) — 128KB
• weat-20250930_def.xml (EX-101.DEF) — 781KB
• weat-20250930_lab.xml (EX-101.LAB) — 303KB
• weat-20250930_pre.xml (EX-101.PRE) — 847KB
• tags20250930_10q_htm.xml (XML) — 5918KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 63 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 108 Item 4.

Controls and Procedures

Controls and Procedures 112

OTHER INFORMATION

Part II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 113 Item 1A.

Risk Factors

Risk Factors 113 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 114 Item 3. Defaults Upon Senior Securities 116 Item 4. Mine Safety Disclosures 116 Item 5. Other Information 116 Item 6. Exhibits 117 2 Table of Contents

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Index to Financial Statements Documents Page TEUCRIUM COMMODITY TRUST Combined Statements of Assets and Liabilities at September 30, 2025 (Unaudited) and December 31, 2024 F-1 Combined Schedule of Investments at September 30, 2025 (Unaudited) and December 31, 2024 F-2 Combined Statements of Operations (Unaudited) for the three and nine months ended September 30, 2025 and 2024 F-6 Combined Statements of Changes in Net Assets (Unaudited) for the three and nine months ended September 30, 2025 and 2024 F-7 Combined Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2025 and 2024 F-8 Teucrium Corn Fund Statements of Assets and Liabilities at September 30, 2025 (Unaudited) and December 31, 2024 F-9 Teucrium Corn Fund S chedule of Investments at September 30, 2025 (Unaudited) and December 31, 2024 F-10 Teucrium Corn Fund S tatements of Operations (Unaudited) for the three and nine months ended September 30, 2025 and 2024 F-12 Teucrium Corn Fund S tatements of Changes in Net Assets (Unaudited) for the three and nine months ended September 30, 2025 and 2024 F-13 Teucrium Corn Fund S tatements of Cash Flows (Unaudited) for the nine months ended September 30, 2025 and 2024 F-14 Teucrium Soybean Fund Statements of Assets and Liabilities at September 30, 2025 (Unaudited) and December 31, 2024 F-15 Teucrium Soybean Fund S chedule of Investments at September 30, 2025 (Unaudited) and December 31, 2024 F-16 Teucrium Soybean Fund S tatements of Operations (Unaudited) for the three and nine months ended September 30, 2025 and 2024 F-18 Teucrium Soybean Fund S tatements of Changes in Net Assets (Unaudited) for the three and nine months ended September 30, 2025 and 2024 F-19 Teucrium Soybean Fund S tatements of Cash Flows (Unaudited) for the nine months ended September 30, 2025 and 2024 F-20 Teucrium Sugar Fund Statements of Assets and Liabilities at September 30,

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