weat
Filed pursuant
to Rule 424(b)(3)
File No.
333-263293
TEUCRIUM WHEAT
FUND
Supplement dated
March 29, 2022
to
Prospectus dated
March 9, 2022 (as supplemented March 23,
2022)
This supplement
updates the prospectus of the Teucrium Wheat Fund dated March 9,
2022 (as supplemented March 23, 2022), with the following
information. It should be read in its entirety and kept together
with your prospectus for future
reference.
1.
Principal Investment Risks
of an Investment in the Fund. The disclosure in this
section of the prospectus relating to the Fund's futures commission
merchants is replaced in its entirety with the
following:
The Fund currently has two
futures commission merchants ("FCMs") through which it buys and
sells futures contracts. The recent volatility in the wheat futures
market may lead one or both of the Fund's FCMs to impose risk
mitigation procedures that could limit the Fund's investment in
wheat futures contracts beyond the accountability and position
limits imposed by futures contract exchanges as discussed herein.
One of the FCMs has imposed a financial ceiling on initial margin
that could change and become more or less restrictive on the
Fund’s activities depending upon a variety of conditions
beyond the Sponsor’s control. If the Fund’s other
current FCM were to impose position limits, or if any other FCM
with which the Fund establishes a relationship in the future were
to impose position limits, the Fund's ability to meet its
investment objective could be negatively impacted. The Fund
continues to monitor and manage its existing relationships with its
FCMs and will continue to seek additional relationships with FCMs
as needed.
The
Fund has replaced similar disclosure about the Fund's futures
commission merchants under “Risks Associated with Investing Directly or
Indirectly in Wheat” of the
prospectus.
2.
Principal Investment Risks
of an Investment in the Fund. The following disclosure
is added to this section of the prospectus relating to certain
risks posed by the wheat market:
To
place the impacts of the geopolitical events described above in
context, the following table compares the percentage change in
wheat prices, the price of wheat futures contracts, the price of
the Fund's shares, and the increased trading volume of wheat
futures in the twenty trading days prior to the date of the Russian
invasion of Ukraine (January 27, 2022 to February 23, 2022),
compared to the twenty trading days following (February 24, 2022 to
March 23, 2022).
DATA
POINT
|
JANUARY 27, 2022 TO
FEBRUARY 23, 2022
(20 TRADING DAYS BEFORE
THE RUSSIAN INVASION)
|
FEBRUARY 24, 2022 TO
MARCH 23, 2022
(20 TRADING DAYS AFTER
THE RUSSIAN INVASION)
|
Wheat
prices
|
Average SPOT
Wheat Price = $7.8632
|
Average SPOT
Wheat Price = $11.13713
|
Wheat futures
prices
|
Average Futures
Price Across next 4 contracts (excluding SPOT month) =
$7.8971
|
Average Futures
Price Across next 4 contracts (excluding SPOT month) =
$10.25
|
Average volume
of futures
|
Average Volume
Across next 4 contracts (excluding SPOT month) =
19,409
|
Average Volume
Across next 4 contracts (excluding SPOT month) =
34,279
|
Degree of
backwardation / Roll Yield
|
Average Daily
Roll Yield to SPOT Across 7 Contracts Period Averaged = -0.23%
(contango)
|
Average Daily
Roll Yield to SPOT Across 7 Contracts Period Averaged = +26.56%
(backwardation)
|
Fund share
prices
|
Average Price =
$7.5737
|
Average Price =
$10.18
|
Average share
volume
|
639,398
|
8,273,913
|
The Fund has
added similar disclosure under “The Wheat Market” in the Statement
of Additional Information.
3. Incorporation by Reference
of Certain Information. The following replaces the current
list of documents specifically incorporated by reference into the
prospectus:
●
our Annual
Report on Form 10-K for the fiscal year ended December 31, 2021,
filed with the SEC on March 16,
2022