Derivative Instruments and Hedging Activities

In the normal course of business, the Funds utilize 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 Funds’ 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 Funds are also subject to additional counterparty risk due to inability of its counterparties to meet the terms of their contracts. For the years ended December 31, 2018 and 2017, the Funds invested only in commodity futures contracts specifically related to each Fund.

Futures Contracts

The Funds are subject to commodity price risk in the normal course of pursuing their 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 FCM. Subsequent payments (variation margin) are made or received by each Fund each day, depending on the daily fluctuations in the value of the contract, and are recorded as unrealized gains or losses by each Fund. Futures contracts may reduce the Funds’ 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 each 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 table discloses information about offsetting assets and liabilities presented in the statements of assets and liabilities to enable users of these financial statements to evaluate the effect or potential effect of netting arrangements for recognized assets and liabilities. These recognized assets and liabilities are presented as defined in FASB ASU No. 2011-11 “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities” and subsequently clarified in FASB ASU 2013-01 “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.”

The following table also identifies the fair value amounts of derivative instruments included in the statements of assets and liabilities as derivative contracts, categorized by primary underlying risk and held by the FCM, ED&F Man as of December 31, 2018 and 2017.

Offsetting of Financial Assets and Derivative Assets as of December 31, 2018

	(i)		(ii)		(iii) = (i-ii)		(iv)			(v) = (iii)-(iv)
								Gross Amount Not Offset in the Statement of Assets and Liabilities	Gross Amount Not Offset in the Statement of Assets and Liabilities
Description	Gross Amount of Recognized Assets		Gross Amount Offset in the Statement of Assets and Liabilities		Net Amount Presented in the Statement of Assets and Liabilities			Futures Contracts Available for Offset			Collateral, Due to Broker		Net Amount
Commodity Price
Corn futures contracts	$	107,363	$	-	$	107,363		$	107,363		$	-	$	-
Soybeans futures contracts	$	228,400	$	-	$	228,400		$	39,250		$	-	$	189,150
Sugar futures contracts	$	233,979	$	-	$	233,979		$	47,656		$	-	$	186,323

Offsetting of Financial Liabilities and Derivative Liabilities as of December 31, 2018

	(i)		(ii)		(iii) = (i-ii)		(iv)			(v) = (iii)-(iv)
								Gross Amount Not Offset in the Statement of Assets and Liabilities	Gross Amount Not Offset in the Statement of Assets and Liabilities
Description	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Statement of Assets and Liabilities		Net Amount Presented in the Statement of Assets and Liabilities			Futures Contracts Available for Offset			Collateral, Due from Broker		Net Amount
Commodity Price
Corn futures contracts	$	1,297,288	$	-	$	1,297,288		$	107,363		$	1,189,925	$	-
Soybeans futures contracts	$	39,250	$	-	$	39,250		$	39,250		$	-	$	-
Sugar futures contracts	$	47,656	$	-	$	47,656		$	47,656		$	-	$	-
Wheat futures contracts	$	3,985,400	$	-	$	3,985,400		$	-		$	3,985,400	$	-

Offsetting of Financial Assets and Derivative Assets as of December 31, 2017

	(i)		(ii)		(iii) = (i-ii)		(iv)			(v) = (iii)-(iv)

								Gross Amount Not Offset in the Statement of Assets and Liabilities

Description	Gross Amount of Recognized Assets		Gross Amount Offset in the Statement of Assets and Liabilities		Net Amount Presented in the Statement of Assets and Liabilities			Futures Contracts Available for Offset			Collateral, Due to Broker		Net Amount
Commodity Price
Corn futures contracts	$	120,487	$	-	$	120,487		$	120,487		$	-	$	-
Sugar futures contracts	$	184,319	$	-	$	184,319		$	67,133		$	-	$	117,186
Wheat futures contracts	$	604,475	$	-	$	604,475		$	604,475		$	-	$	-

F-20

Table of Contents

Offsetting of Financial Liabilities and Derivative Liabilities as of December 31, 2017

	(i)		(ii)		(iii) = (i-ii)		(iv)				(v) = (iii)-(iv)



Description	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Statement of Assets and Liabilities		Net Amount Presented in the Statement of Assets and Liabilities		Futures Contracts Available for Offset		Collateral, Due from Broker		Net Amount
Commodity Price
Corn futures contracts	$	1,962,050	$	-	$	1,962,050	$	120,487	$	1,841,563	$	-
Soybeans futures contracts	$	448,063	$	-	$	448,063	$	-	$	448,063	$	-
Sugar futures contracts	$	67,133	$	-	$	67,133	$	67,133	$	-	$	-
Wheat futures contracts	$	3,200,525	$	-	$	3,200,525	$	604,475	$	2,596,050	$	-

The following is a summary of realized and net change in unrealized gains (losses) of the derivative instruments utilized by the Trust:

Year ended December 31, 2018

Primary Underlying Risk	Realized (Loss) Gain on Commodity Futures Contracts			Net Change in Unrealized Appreciation or (Depreciation) on Commodity Futures Contracts
Commodity Price
Corn futures contracts	$	(3,025,313	)	$	651,638
Soybeans futures contracts		(2,085,438	)		637,213
Sugar futures contracts		(2,314,984	)		69,137
Wheat futures contracts		2,502,112			(1,389,350	)
Total commodity futures contracts	$	(4,923,623	)	$	(31,362	)

Year ended December 31, 2017

Primary Underlying Risk	Realized (Loss) Gain on Commodity Futures Contracts			Net Change in Unrealized (Depreciation) or Appreciation on Commodity Futures Contracts
Commodity Price
Corn futures contracts	$	(5,603,513	)	$	(380,763	)
Soybeans futures contracts		8,425			(793,538	)
Sugar futures contracts		(2,435,305	)		263,581
Wheat futures contracts		(5,305,113	)		1,325,538
Total commodity futures contracts	$	(13,335,506	)	$	414,818

Year ended December 31, 2016

Primary Underlying Risk	Realized (Loss) Gain on Commodity Futures Contracts			Net Change in Unrealized Appreciation or (Depreciation) on Commodity Futures Contracts
Commodity Price
Corn futures contracts	$	(9,438,913	)
Soybeans futures contracts		939,088
Sugar futures contracts		1,967,694			(510,451	)
Wheat futures contracts		(9,631,400	)		(1,997,125	)
Total commodity futures contracts	$	(16,163,531	)	$	508,136

Volume of Derivative Activities

The average notional market value categorized by primary underlying risk for all futures contracts held was $169.0 million in 2018, $153.9 million in 2017, and $132.4 million in 2016.

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 years ended December 31, 2018 and 2017, the Fund invested only in 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 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 table discloses information about offsetting assets and liabilities presented in the statements of assets and liabilities to enable users of these financial statements to evaluate the effect or potential effect of netting arrangements for recognized assets and liabilities. These recognized assets and liabilities are presented as defined in FASB ASU No. 2011-11 “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities” and subsequently clarified in FASB ASU 2013-01 “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.”

The following table also identifies the fair value amounts of derivative instruments included in the statements of assets and liabilities as derivative contracts, categorized by primary underlying risk and held by the FCM, ED&F Man as of December 31, 2018 and 2017.

Offsetting of Financial Assets and Derivative Assets as of December 31, 2018

	(i)		(ii)		(iii) = (i-ii)		(iv)				(v) = (iii)-(iv)
							Gross Amount Not Offset in the Statement of Assets and Liabilities
Description	Gross Amount of Recognized Assets		Gross Amount Offset in the Statement of Assets and Liabilities		Net Amount Presented in the Statement of Assets and Liabilities		Futures Contracts Available for Offset		Collateral, Due to Broker		Net Amount
Commodity Price
Corn futures contracts	$	107,363	$	-	$	107,363	$	107,363		-	$	-

Offsetting of Financial Liabilities and Derivative Liabilities as of December 31, 2018

	(i)		(ii)		(iii) = (i-ii)		(iv)				(v) = (iii)-(iv)
	Gross Amount Not Offset in the Statement of Assets and Liabilities
Description	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Statement of Assets and Liabilities		Net Amount Presented in the Statement of Assets and Liabilities		Futures Contracts Available for Offset		Collateral, Due from Broker		Net Amount
Commodity Price
Corn futures contracts	$	1,297,288	$	-	$	1,297,288	$	107,363		1,189,925	$	-

Offsetting of Financial Assets and Derivative Assets as of December 31, 2017

	(i)		(ii)		(iii) = (i)-(ii)		(iv)				(v) = (iii)-(iv)
							Gross Amount Not Offset in the Statement of Assets and Liabilities
Description	Gross Amount of Recognized Assets		Gross Amount Offset in the Statement of Assets and Liabilities		Net Amount Presented in the Statement of Assets and Liabilities		Futures Contracts Available for Offset		Collateral, Due to Broker		Net Amount
Commodity Price
Corn Futures Contracts	$	120,487	$	-	$	120,487	$	120,487	$	-	$	-

Offsetting of Financial Liabilities and Derivative Liabilities as of December 31, 2017

	(i)		(ii)		(iii) = (i)-(ii)		(iv)				(v) = (iii)-(iv)
							Gross Amount Not Offset in the Statement of Assets and Liabilities
Description	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Statement of Assets and Liabilities		Net Amount Presented in the Statement of Assets and Liabilities		Futures Contracts Available for Offset		Collateral, Due from Broker		Net Amount
Commodity Price
Corn Futures Contracts	$	1,962,050	$	-	$	1,962,050	$	120,487	$	1,841,563	$	-

The following is a summary of realized and net change in unrealized gains (losses) of the derivative instruments utilized by the Fund:

Year ended December 31, 2018

					Net Change in Unrealized
	Realized Loss on				Appreciation on
	Commodity Futures Contracts				Commodity Futures Contacts
Commodity Price
Corn futures contracts	$	(3,025,313	)	$		651,638

Year ended December 31, 2017

				Net Change in Unrealized
	Realized Loss on			Depreciation on
	Commodity Futures Contracts			Commodity Futures Contacts
Commodity Price
Corn futures contracts	$	(5,603,513	)	$	(380,763	)

Year ended December 31, 2016

				Net Change in Unrealized
	Realized Loss on			Appreciation on
	Commodity Futures Contracts			Commodity Futures Contacts
Commodity Price
Corn futures contracts	$	(9,438,913	)	$	2,447,750

Volume of Derivative Activities

The average notional market value categorized by primary underlying risk for all futures contracts held was $69.7 million in 2018, $67.5 million in 2017, and $71.6 million in 2016.

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 years ended December 31, 2018 and 2017, the Fund invested only in 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 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 table discloses information about offsetting assets and liabilities presented in the statements of assets and liabilities to enable users of these financial statements to evaluate the effect or potential effect of netting arrangements for recognized assets and liabilities. These recognized assets and liabilities are presented as defined in FASB ASU No. 2011-11 “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities” and subsequently clarified in FASB ASU 2013-01 “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.”

The following table also identifies the fair value amounts of derivative instruments included in the statements of assets and liabilities as derivative contracts, categorized by primary underlying risk and held by the FCM, ED&F Man as of December 31, 2018 and 2017.

Offsetting of Financial Assets and Derivative Assets as of December 31, 2018

	(i)		(ii)		(iii) = (i-ii)		(iv)				(v) = (iii)-(iv)
							Gross Amount Not Offset in the Statement of Assets and Liabilities
Description	Gross Amount of Recognized Assets		Gross Amount Offset in the Statement of Assets and Liabilities		Net Amount Presented in the Statement of Assets and Liabilities		Futures Contracts Available for Offset		Collateral, Due to Broker		Net Amount
Commodity Price
Soybeans futures contracts	$	228,400	$	-	$	228,400	$	39,250	$	-	$	189,150

Offsetting of Financial Liabilities and Derivative Liabilities as of December 31, 2018

	(i)		(ii)		(iii) = (i-ii)		(iv)				(v) = (iii)-(iv)
							Gross Amount Not Offset in the Statement of Assets and Liabilities
Description	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Statement of Assets and Liabilities		Net Amount Presented in the Statement of Assets and Liabilities		Futures Contracts Available for Offset		Collateral, Due from Broker		Net Amount
Commodity Price
Soybeans futures contracts	$	39,250	$	-	$	39,250	$	39,250	$	-	$	-

Offsetting of Financial Liabilities and Derivative Liabilities as of December 31, 2017

	(i)		(ii)		(iii) = (i)-(ii)		(iv)				(v) = (iii)-(iv)
							Gross Amount Not Offset in the Statement of Assets and Liabilities
Description	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Statement of Assets and Liabilities		Net Amount Presented in the Statement of Assets and Liabilities		Futures Contracts Available for Offset		Collateral, Due from Broker		Net Amount
Commodity Price
Soybean Futures Contracts	$	448,063	$	-	$	448,063	$	-	$	448,063	$	-

The following is a summary of realized and net change in unrealized gains (losses) of the derivative instruments utilized by the Fund:

Year ended December 31, 2018

Primary Underlying Risk	Realized Loss on Commodity Futures Contracts			Net Change in Unrealized Appreciation on Commodity Futures Contracts
Commodity Price
Soybeans futures contracts	$	(2,085,438	)	$	637,213

Year ended December 31, 2017

			Net Change in Unrealized
	Realized Gain on		Depreciation on
	Commodity Futures Contracts		Commodity Futures Contacts
Commodity Price
Soybean futures contracts	$	8,425	$	(793,538	)

Year ended December 31, 2016

			Net Change in Unrealized
	Realized Gain on		Appreciation on
	Commodity Futures Contracts		Commodity Futures Contacts
Commodity Price
Soybean futures contracts	$	939,088	$	567,962

Volume of Derivative Activities

The average notional market value categorized by primary underlying risk for all futures contracts held was $21.9 million in 2018, $13.2 million in 2017, and $12.1 million in 2016.

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 years ended December 31, 2018 and 2017, the Fund invested only in 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 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 table discloses information about offsetting assets and liabilities presented in the statements of assets and liabilities to enable users of these financial statements to evaluate the effect or potential effect of netting arrangements for recognized assets and liabilities. These recognized assets and liabilities are presented as defined in FASB ASU No. 2011-11 “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities” and subsequently clarified in FASB ASU 2013-01 “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.”

The following table also identifies the fair value amounts of derivative instruments included in the statements of assets and liabilities as derivative contracts, categorized by primary underlying risk and held by the FCM, ED&F Man as of December 31, 2018 and 2017.

Offsetting of Financial Assets and Derivative Assets as of December 31, 2018

	(i)		(ii)		(iii) = (i)-(ii)		(iv)				(v) = (iii)-(iv)
							Gross Amount Not Offset in the Statement of Assets and Liabilities
Description	Gross Amount of Recognized Assets		Gross Amount Offset in the Statement of Assets and Liabilities		Net Amount Presented in the Statement of Assets and Liabilities		Futures Contracts Available for Offset		Collateral, Due to Broker		Net Amount
Commodity Price
Sugar Futures Contracts	$	233,979	$	-	$	233,979	$	-	$	186,323

Offsetting of Financial Liabilities and Derivative Liabilities as of December 31, 2018

	(i)		(ii)		(iii) = (i-ii)		(iv)				(v) = (iii)-(iv)
							Gross Amount Not Offset in the Statement of Assets and Liabilities
Description	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Statement of Assets and Liabilities		Net Amount Presented in the Statement of Assets and Liabilities		Futures Contracts Available for Offset		Collateral, Due from Broker		Net Amount
Commodity Price
Sugar futures contracts	$	47,656	$	-	$	47,656	$	47,656	$	-	$	-

Offsetting of Financial Assets and Derivative Assets as of December 31, 2017

	(i)		(ii)		(iii) = (i)-(ii)		(iv)				(v) = (iii)-(iv)
							Gross Amount Not Offset in the Statement of Assets and Liabilities
Description	Gross Amount of Recognized Assets		Gross Amount Offset in the Statement of Assets and Liabilities		Net Amount Presented in the Statement of Assets and Liabilities		Futures Contracts Available for Offset		Collateral, Due to Broker		Net Amount
Commodity Price
Sugar Futures Contracts	$	184,319	$	-	$	184,319	$	67,133	$	-	$	117,186

Offsetting of Financial Liabilities and Derivative Liabilities as of December 31, 2017

	(i)		(ii)		(iii) = (i)-(ii)		(iv)				(v) = (iii)-(iv)
							Gross Amount Not Offset in the Statement of Assets and Liabilities
Description	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Statement of Assets and Liabilities		Net Amount Presented in the Statement of Assets and Liabilities		Futures Contracts Available for Offset		Collateral, Due from Broker		Net Amount
Commodity Price
Sugar Futures Contracts	$	67,133	$	-	$	67,133	$	67,133	$	-	$	-

The following is a summary of realized and net change in unrealized gains (losses) of the derivative instruments utilized by the Fund:

Year ended December 31, 2018

Primary Underlying Risk	Realized Loss on Commodity Futures Contracts			Net Change in Unrealized Appreciation on Commodity Futures Contracts
Commodity Price
Sugar futures contracts	$	(2,314,984	)	$	69,137

Year ended December 31, 2017

	Realized Loss on Commodity Futures Contracts			Net Change in Unrealized Appreciation on Commodity Futures Contacts
Commodity Price
Sugar futures contracts	$	(2,435,305	)	$	263,581

Year ended December 31, 2016

	Realized Gain on Commodity Futures Contracts		Net Change in Unrealized Depreciation on Commodity Futures Contacts
Commodity Price
Sugar futures contracts	$	1,967,694	$	(510,451	)

Volume of Derivative Activities

The average notional market value categorized by primary underlying risk for all futures contracts held was $12.3 million in 2018, $7.1 million in 2017, and $6.1 million in 2016.

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 years ended December 31, 2018 and 2017, the Fund invested only in 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 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 table discloses information about offsetting assets and liabilities presented in the statements of assets and liabilities to enable users of these financial statements to evaluate the effect or potential effect of netting arrangements for recognized assets and liabilities. These recognized assets and liabilities are presented as defined in FASB ASU No. 2011-11 “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities” and subsequently clarified in FASB ASU 2013-01 “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.”

The following table also identifies the fair value amounts of derivative instruments included in the statements of assets and liabilities as derivative contracts, categorized by primary underlying risk and held by the FCM, ED&F Man as of December 31, 2018 and 2017.

Offsetting of Financial Liabilities and Derivative Liabilities as of December 31, 2018

	(i)		(ii)		(iii) = (i-ii)		(iv)				(v) = (iii)-(iv)
							Gross Amount Not Offset in the Statement of Assets and Liabilities
Description	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Statement of Assets and Liabilities		Net Amount Presented in the Statement of Assets and Liabilities		Futures Contracts Available for Offset		Collateral, Due from Broker		Net Amount
Commodity Price
Wheat futures contracts	$	3,985,400	$	-	$	3,985,400	$	-	$	3,985,400	$	-

Offsetting of Financial Assets and Derivative Assets as of December 31, 2017

	(i)		(ii)		(iii) = (i)-(ii)		(iv)				(v) = (iii)-(iv)
							Gross Amount Not Offset in the Statement of Assets and Liabilities
Description	Gross Amount of Recognized Assets		Gross Amount Offset in the Statement of Assets and Liabilities		Net Amount Presented in the Statement of Assets and Liabilities		Futures Contracts Available for Offset		Collateral, Due to Broker		Net Amount
Commodity Price
Wheat Futures Contracts	$	604,475	$	-	$	604,475	$	604,475	$	-	$	-

Offsetting of Financial Liabilities and Derivative Liabilities as of December 31, 2017

	(i)		(ii)		(iii) = (i)-(ii)		(iv)				(v) = (iii)-(iv)
							Gross Amount Not Offset in the Statement of Assets and Liabilities
Description	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Statement of Assets and Liabilities		Net Amount Presented in the Statement of Assets and Liabilities		Futures Contracts Available for Offset		Collateral, Due from Broker		Net Amount
Commodity Price
Wheat Futures Contracts	$	3,200,525	$	-	$	3,200,525	$	604,475	$	2,596,050	$	-

The following is a summary of realized and net change in unrealized gains (losses) of the derivative instruments utilized by the Fund:

Year ended December 31, 2018

Primary Underlying Risk	Realized Gain on Commodity Futures Contracts		Net Change in Unrealized Depreciation on Commodity Futures Contracts
Commodity Price
Wheat futures contracts	$	2,502,112	$	(1,389,350	)

Year ended December 31, 2017

				Net Change in Unrealized
	Realized Loss on			Appreciation on
	Commodity Futures Contracts			Commodity Futures Contacts
Commodity Price
Wheat futures contracts	$	(5,305,113	)	$	1,325,538

Year ended December 31, 2016

				Net Change in Unrealized
	Realized Loss on			Depreciation on
	Commodity Futures Contracts			Commodity Futures Contacts
Commodity Price
Wheat futures contracts	$	(9,631,400	)	$	(1,997,125	)

Volume of Derivative Activities

The average notional market value categorized by primary underlying risk for all futures contracts held was $65.0 million in 2018, $66.0 million in 2017, and $42.5 million in 2016.