Derivative Instruments and Hedging Activities (Teucrium Natural Gas Fund [Member])

6 Months Ended

Jun. 30, 2012

Teucrium Natural Gas Fund [Member]

Derivative Instruments and Hedging Activities

Note 4 - Derivative Instruments and Hedging Activities

In the normal course of business, the Fund utilizes derivative contracts in connection with its proprietary trading activities. Investments in derivative contracts are subject to additional risks that can result in a loss of all or part of an investment. The Fund's derivative activities and exposure to derivative contracts are classified by the following primary underlying risks: interest rate, credit, commodity price, and equity price risks. 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. For the periods ended June 30, 2012 and from the commencement of operations (February 1, 2011) through June 30, 2011, the Fund had invested only in natural gas commodity futures contracts.

Futures Contracts

The Fund is subject to commodity price risk in the normal course of pursuing its investment objectives. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

The purchase and sale of futures contracts requires margin deposits with a Futures Commission Merchant ("FCM"). Subsequent payments (variation margin) are made or received by the Fund each day, depending on the daily fluctuations in the value of the contract, and are recorded as unrealized gains or losses by the Fund. Futures contracts may reduce the Fund's exposure to counterparty risk since futures contracts are exchange-traded; and the exchange's clearinghouse, as the counterparty to all exchange-traded futures, guarantees the futures against default.

The Commodity Exchange Act requires an FCM to segregate all customer transactions and assets from the FCM's proprietary activities. A customer's cash and other equity deposited with an FCM are considered commingled with all other customer funds subject to the FCM's segregation requirements. In the event of an FCM's insolvency, recovery may be limited to the Fund's pro rata share of segregated customer funds available. It is possible that the recovery amount could be less than the total of cash and other equity deposited.

The following tables identify the fair value amounts of derivative instruments included in the statement of assets and liabilities as derivative contracts, categorized by primary underlying risk, at June 30, 2012 and December 31, 2011. Balances are presented on a gross basis, prior to the application of the impact of counterparty and collateral netting. Total derivative assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of master netting arrangements and have been reduced by the application of cash collateral receivables and payables with its counterparties. The following tables also identify the net gain and loss amounts included in the statements of operations as realized and unrealized gain on trading of commodity futures contracts, categorized by primary underlying risk, for the period January 1, 2012 to June 30, 2012, for the period April 1, 2012 to June 30, 2012, for the period April 1, 2011 to June 30, 2011, and for the period from commencement of operations (February 1, 2011) to June 30, 2011.

At June 30, 2012, the fair value of derivative instruments was as follows:

Primary Underlying Risk	Asset Derivatives		Liability Derivatives			Net Derivatives
Commodity price
NYMEX natural gas futures contracts	$	-	$	(272,363	)	$	(272,363	)

At December 31, 2011, the fair value of derivative instruments was as follows:

Primary Underlying Risk	Asset Derivatives		Liability Derivatives			Net Derivatives
Commodity price
NYMEX natural gas futures contracts	$	-	$	(602,440	)	$	(602,440	)

The following is a summary of realized and unrealized gains and losses of the derivative instruments utilized by the Fund:

For the period April 1, 2012 to June 30, 2012

	Realized Loss on			Net Change in Unrealized Gain
Primary Underlying Risk	Derivative Instruments			on Derivative Instruments
Commodity price
NYMEX natural gas futures contracts	$	(63,608	)	$	197,507

For the period from January 1, 2012 to June 30, 2012

	Realized Loss on			Net Change in Unrealized Gain
Primary Underlying Risk	Derivative Instruments			on Derivative Instruments
Commodity price
NYMEX natural gas futures contracts	$	(567,888	)	$	330,077

For the period April 1, 2011 to June 30, 2011

	Realized Loss on			Net Change in Unrealized Loss
Primary Underlying Risk	Derivative Instruments			on Derivative Instruments
Commodity price
NYMEX natural gas futures contracts	$	(3,752	)	$	(100,528	)

For the period from commencement of operations (February 1, 2011) to June 30, 2011

	Realized Loss on			Net Change in Unrealized Loss
Primary Underlying Risk	Derivative Instruments			on Derivative Instruments
Commodity price
NYMEX natural gas futures contracts	$	(327,940	)	$	(57,008	)

Volume of Derivative Activities

At June 30, 2012, the notional amounts and number of contracts, categorized by primary underlying risk, were as follows:

	Long Exposure
	Notional		Number
Primary Underlying Risk	Amounts		of Contracts
Commodity price
NYMEX natural gas futures contracts	$	3,556,000		111

At December 31, 2011, the notional amounts and number of contracts, categorized by primary underlying risk, were as follows:

	Long exposure
	Notional		Number
Primary Underlying Risk	Amounts		of Contracts
Commodity price
NYMEX natural gas futures contracts	$	1,383,770		43