Corn Investments Deliver Solid Returns, Despite Storage Costs

Grains sector investor Darin Newsom follows Peter Lynch's advice to invest in what he knows. With over five decades of experience, Newsom focuses on the Grains market and specifically corn. He uses a variety of tools, including futures, options, and Exchange Traded Funds (ETFs), but notes that storing physical grain is not feasible for him or his wife. According to Newsom, corn follows its technical and fundamental factors relatively well.

The Barchart National Corn Price Index (ZCPAUS.CM) dropped from $4.0750 at the end of May to $3.8550 in June before rising to an August close of about $4.9150. This represents a quarterly gain of 84.0 cents with a quarterly return of 20.6%. Over the past year, cash corn has gained 28%, and for 2026, it's up 24%.

Newsom notes that if one considers the cost of holding cash grain in storage, such as $1.25 per bushel, the returns may not be as attractive. He also discusses futures contracts, specifically the December futures contract (ZCZ26), which gained 78.5 cents over the past year, 77.25 cents for 2026, and 62.75 cents during the summer quarter.

For those who use ETFs, Newsom tracks the Teucrium CORN fund, which finished the summer quarter with a gain of 11.9%, was up 13.4% for 2026, and added 14.2% over the past 12 months.