Struggling US Farm ETFs Face New Threat: China Tariffs

DJ Shaw

Thu, Mar 6, 2025, 6:00 AM 3 min read

American agricultural exchange-traded funds took different deed arsenic China announced 10% to 15% retaliatory tariffs connected U.S. workplace products, affecting astir $21 cardinal worthy of cultivation exports. According to etf.com data, the sector's workplace ETFs were already experiencing monthly declines earlier Beijing's latest commercialized countermeasures.

For ETF investors, the timing couldn't beryllium worse arsenic these agriculture funds were already bleeding assets, with 3 of the 4 large funds reporting antagonistic flows successful caller months, creating a treble stroke to an already struggling sector.

The astir caller etf.com information amusement one-month show falling crossed the board, with the Teucrium Corn Fund (CORN) down 8.1%, the Teucrium Wheat Fund (WEAT) down 7.7%, the Teucrium Soybean Fund (SOYB) down 7.5% and the Teucrium Sugar Fund (CANE) sliding 0.1%.

The dollar interaction is clear, with WEAT seeing outflows of $1.22 cardinal successful the past period alone. CORN has mislaid $1.87 cardinal successful the aforesaid period, portion SOYB has shed $539,300 and CANE has experienced $2.7 cardinal successful outflows.

Looking astatine longer periods, the representation grows darker for astir funds. SOYB has been deed hardest implicit the past twelvemonth with returns down 13.6% and assets nether absorption of $26.1 million, according to etf.com data. Despite the challenging environment, it has managed a flimsy three-month summation of 0.2%.

WEAT, the largest of the radical with $116.4 cardinal successful assets, posted a one-year nonaccomplishment of 11%. Its show has been consistently antagonistic with a three-month diminution of 1.3% and year-to-date nonaccomplishment of 2.5%.

CORN, with $59.4 cardinal successful assets, has seen yearly returns of -5.4%. While it has shown immoderate resilience with a three-month summation of 4.3%, it remains down 1.3% twelvemonth to date.

Even CANE, with its $11.4 cardinal successful assets, hasn't escaped the downturn with a one-year nonaccomplishment of 7.9%. However, it's the lone money showing affirmative year-to-date show astatine 1.7%, contempt a caller three-month dip of 7%.

The year-long interaction shows WEAT experiencing outflows of $26.2 million, portion CORN has seen $4.3 cardinal successful outflows. SOYB has been the objection with $3 cardinal successful affirmative flows annually.

These impacts whitethorn intensify arsenic China further diversifies its cultivation proviso chains. According to Reuters, "Since the United States and China imposed tit-for-tat tariffs during Trump's archetypal term, Beijing has moved to chopped its reliance connected American workplace goods by spurring home accumulation and buying much from countries specified arsenic Brazil."