Edgar Filing: Teucrium Commodity Trust

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2012.

o	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to .

Commission File Number: 001-34765

Teucrium Commodity Trust

(Exact name of registrant as specified in its charter)

Delaware		61-1604335
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

232 Hidden Lake Road, Building A

Brattleboro, Vermont 05301

(Address of principal executive offices) (Zip code)

(802) 257-1617

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

x Yes o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

x Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o		Accelerated filer x
Non-accelerated filer o		Smaller reporting company o
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

o Yes x No

TEUCRIUM COMMODITY TRUST

Table of Contents

		Page
Part I. FINANCIAL INFORMATION		3

Item 1. Financial Statements.		3

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.		114

Item 3. Quantitative and Qualitative Disclosures About Market Risk.		134

Item 4. Controls and Procedures.		137

Part II. OTHER INFORMATION		137

Item 1. Legal Proceedings.		137

Item 1A. Risk Factors.		137

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.		155

Item 3. Defaults Upon Senior Securities.		158

Item 4. Mine Safety Disclosures.		158

Item 5. Other Information.		158

Item 6. Exhibits.		158

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements.

Index to Financial Statements

Documents		Page
TEUCRIUM COMMODITY TRUST

Statements of Assets and Liabilities at June 30, 2012 (Unaudited) and December 31, 2011		6

Schedule of Investments at June 30, 2012 (Unaudited) and December 31, 2011		7

Statements of Operations (Unaudited) for the three and six months ended June 30, 2012 and 2011		9

Statements of Changes in Net Assets (Unaudited) for the six months ended June 30, 2012 and 2011		10

Statements of Cash Flows (Unaudited) for the six months ended June 30, 2012 and 2011		11

Notes to Financial Statements		12

TEUCRIUM CORN FUND

Statements of Assets and Liabilities at June 30, 2012 (Unaudited) and December 31, 2011		22

Schedule of Investments at June 30, 2012 (Unaudited) and December 31, 2011		23

Statements of Operations (Unaudited) for the three and six months ended June 30, 2012 and 2011		25

Statements of Changes in Net Assets (Unaudited) for the six months ended June 30, 2012 and 2011		26

Statements of Cash Flows (Unaudited) for the six months ended June 30, 2012 and 2011		27

Notes to Financial Statements		28

TEUCRIUM NATURAL GAS FUND

Statements of Assets and Liabilities at June 30, 2012 (Unaudited) and December 31, 2011		36

Schedule of Investments at June 30, 2012 (Unaudited) and December 31, 2011		37

Statements of Operations (Unaudited) for the three months ended June 30, 2012 and 2011 and for the six months ended June 30, 2012 and from commencement of operations (February 1, 2011) through June 30, 2011		39

Statements of Changes in Net Assets (Unaudited) for the six months ended June 30, 2012 and from commencement of operations (February 1, 2011) through June 30, 2011		40

Statements of Cash Flows (Unaudited) for the six months ended June 30, 2012 and from commencement of operations (February 1, 2011) through June 30, 2011		41

Notes to Financial Statements		42

TEUCRIUM WTI CRUDE OIL FUND

Statements of Assets and Liabilities at June 30, 2012 (Unaudited) and December 31, 2011		50

Schedule of Investments at June 30, 2012 (Unaudited) and December 31, 2011		51

Statements of Operations for the three months ended June 30, 2012 and 2011 and for the six months ended June 30, 2012 and from commencement of operations (February 23, 2011) through June 30, 2011		53

Statements of Changes in Net Assets (Unaudited) for the six months ended June 30, 2012 and from commencement of operations (February 23, 2011) through June 30, 2011		54

Statements of Cash Flows (Unaudited) for the six months ended June 30, 2012 and from commencement of operations (February 23, 2011) through June 30, 2011		55

Notes to Financial Statements		56

TEUCRIUM SOYBEAN FUND

Statements of Assets and Liabilities at June 30, 2012 (Unaudited) and December 31, 2011		64

Schedule of Investments at June 30, 2012 (Unaudited) and December 31, 2011		65

Statements of Operations (Unaudited) for the three and six months ended June 30, 2012		67

Statement of Changes in Net Assets (Unaudited) for the six months ended June 30, 2012		68

Statement of Cash Flows (Unaudited) for the six months ended June 30, 2012		69

Notes to Financial Statements		70

TEUCRIUM SUGAR FUND

Statements of Assets and Liabilities at June 30, 2012 (Unaudited) and December 31, 2011		77

Schedule of Investments at June 30, 2012 (Unaudited) and December 31, 2011		78

Statements of Operations (Unaudited) for the three and six months ended June 30, 2012		80

Statement of Changes in Net Assets (Unaudited) for the six months ended June 30, 2012		81

Statement of Cash Flows (Unaudited) for the six months ended June 30, 2012		82

Notes to Financial Statements		83

TEUCRIUM WHEAT FUND

Statements of Assets and Liabilities at June 30, 2012 (Unaudited) and December 31, 2011		90

Schedule of Investments at June 30, 2012 (Unaudited) and December 31, 2011		91

Statements of Operations (Unaudited) for the three and six months ended June 30, 2012		93

Statement of Changes in Net Assets (Unaudited) for the six months ended June 30, 2012		94

Statement of Cash Flows (Unaudited) for the six months ended June 30, 2012		95

Notes to Financial Statements		96

TEUCRIUM AGRICULTURAL FUND

Statements of Assets and Liabilities at June 30, 2012 (Unaudited) and December 31, 2011		103

Schedule of Investments (Unaudited) at June 30, 2012		104

Statements of Operations (Unaudited) for three months ended June 30, 2012 and from commencement of operations (March 28, 2012) through June 30, 2012		105

Statement of Changes in Net Assets (Unaudited) from commencement of operations (March 28, 2012) through June 30, 2012		106

Statement of Cash Flows (Unaudited) from commencement of operations (March 28, 2012) through June 30, 2012		107

Notes to Financial Statements		108

TEUCRIUM COMMODITY TRUST

STATEMENTS OF ASSETS AND LIABILITIES

	June 30, 2012		December 31, 2011
	(Unaudited)
Assets

Equity in BNY Mellon trading accounts:
Cash and cash equivalents	$	64,264,049	$	80,567,901
Commodity futures contracts		4,402,049		2,125,714
Collateral, due from broker		2,971,035		8,747,339
Receivable for shares sold		2,100,775		-
Interest receivable		1,159		2,609
Other assets		700,606		404,199
Total assets		74,439,673		91,847,762

Liabilities

Payable for shares redeemed		-		4,147,011
Commodity futures contracts		503,880		3,758,460
Collateral, due to broker		16,137		-
Management fee payable to Sponsor		51,182		74,629
Other liabilities		233,050		44,094
Total liabilities		804,249		8,024,194

Net assets	$	73,635,424	$	83,823,568

The accompanying notes are an integral part of these financial statements.

TEUCRIUM COMMODITY TRUST

SCHEDULE OF INVESTMENTS

June 30, 2012

(Unaudited)

	Fair		Percentage of			Principal
Description: Assets	Value		Net Assets			Amount

Cash equivalents
United States Treasury obligations
U.S. Treasury bills, 0.050%, due July 19, 2012	$	9,999,820		13.58	%	$	10,000,000
U.S. Treasury bills, 0.085%, due May 17, 2012		4,999,735		6.79			5,000,000
Total U.S. Treasury obligations		14,999,555		20.37			15,000,000

Money market funds
Dreyfus Cash Management Plus		49,264,494		66.90

Total cash equivalents	$	64,264,049		87.27	%

					Notional
					Amount
Commodity futures contracts
United States corn futures contracts
CBOT corn futures (690 contracts, settlement date September 14, 2012)	$	1,409,275	1.91	%	$	21,683,250
CBOT corn futures (588 contracts, settlement date December 14, 2012)		986,086	1.34			18,661,650
CBOT corn futures (757 contracts, settlement date December 13, 2013)		1,540,600	2.09			21,621,813

United States soybean futures contracts
CBOT soybean futures (12 contracts, settlement date November 14, 2012)		65,888	0.09			856,650
CBOT soybean futures (10 contracts, settlement date January 14, 2013)		65,750	0.09			713,250
CBOT soybean futures (14 contracts, settlement date November 14, 2013)		16,400	0.02			882,525

United States wheat futures contracts
CBOT wheat futures (26 contracts, settlement date September 14, 2012)		121,763	0.17			984,425
CBOT wheat futures (21 contracts, settlement date December 14, 2012)		77,212	0.10			815,588
CBOT wheat futures (24 contracts, settlement date December 13, 2013)		119,075	0.16			977,400
Total commodity futures contracts	$	4,402,049	5.97	%	$	67,196,551

	Fair		Percentage of			Notional
Description: Liabilities	Value		Net Assets			Amount

Commodity futures contracts
United States natural gas futures contracts
NYMEX natural gas futures (31 contracts, settlement date September 26, 2012)	$	104,346		0.14	%	$	891,870
NYMEX natural gas futures (29 contracts, settlement date October 29, 2012)		134,521		0.18		896,390
NYMEX natural gas futures (25 contracts, settlement date February 26, 2013)		26,216		0.04		871,000
NYMEX natural gas futures (26 contracts, settlement date March 26, 2013)		7,280		0.01		896,740

United States WTI crude oil futures contracts
WTI crude oil futures (8 contracts, settlement date November 16, 2012)		74,149		0.10		693,360
WTI crude oil futures (6 contracts, settlement date May 21, 2013)		91,870		0.12		531,780
WTI crude oil futures (8 contracts, settlement date November 20, 2013)		4,514		0.01		707,600
United States sugar futures contracts
ICE sugar futures (14 contracts, settlement date February 28, 2013)		38,539		0.05		337,120
ICE sugar futures (12 contracts, settlement date April 30, 2013)		-		0.00		286,675
ICE sugar futures (14 contracts, settlement date February 28, 2014)		22,445		0.03		335,395
Total commodity futures contracts	$	503,880		0.68%		$	6,447,930

					Shares
Exchange-traded funds
Teucrium Corn Fund	$	614,813	0.83	%		14,633
Teucrium Soybean Fund		612,538	0.83			25,107
Teucrium Sugar Fund		616,756	0.84			27,939
Teucrium Wheat Fund		615,683	0.84			31,902
Total exchange-traded funds (cost $2,386,521) owned by Teucrium Agricultural Fund	$	2,459,790	3.34	%		99,581

The accompanying notes are an integral part of these financial statements.

TEUCRIUM COMMODITY TRUST

SCHEDULE OF INVESTMENTS

December 31, 2011

	Fair		Percentage of			Principal
Description: Assets	Value		Net Assets			Amount
Cash equivalents
United States Treasury obligations
U.S. Treasury bills, 0.010%, due January 19, 2012	$	9,999,950		11.93	%	$	10,000,000
U.S. Treasury bills, 0.000%, due February 16, 2012		9,999,880		11.93			10,000,000
Total U.S. Treasury obligations		19,999,830		23.86

Money market funds
Dreyfus Cash Management Plus		60,567,971		72.26

Total cash equivalents	$	80,567,801		96.12	%

					Notional
					Amount
Commodity futures contracts
United States corn futures contracts
CBOT corn futures (648 contracts, settlement date July 13, 2012)	$	1,928,408	2.30	%	$	21,424,500

United States WTI crude oil futures contracts
WTI crude oil futures (14 contracts, settlement date November 16, 2012)		15,839	0.02		1,373,540
WTI crude oil futures (16 contracts, settlement date November 20, 2013)		100,303	0.12		1,516,160

United States soybean futures contracts
CBOT Soybean futures (11 contracts, settlement date May 14, 2012)		9,994	0.01		669,625

United States wheat futures contracts
CBOT Wheat futures (20 contracts, settlement date July 13, 2012)		71,170	0.08		686,250
Total commodity futures contracts	$	2,125,714	2.53	%	$	25,670,075

	Fair		Percentage of			Notional
Description: Liabilities	Value		Net Assets			Amount
Commodity futures contracts
United States corn futures contracts
CBOT corn futures (763 contracts, settlement date May 14, 2012)	$	2,478,427		2.96	%	$	24,978,713
CBOT corn futures (849 contracts, settlement date December 14, 2012)		233,096		0.28			24,886,312

United States natural gas futures contracts
NYMEX natural gas futures (11 contracts, settlement date February 27, 2012)		217,844		0.26			331,760
NYMEX natural gas futures (11 contracts, settlement date March 28, 2012)		161,614		0.19			338,690
NYMEX natural gas futures (11 contracts, settlement date September 26, 2012)		120,352		0.14			365,420
NYMEX natural gas futures (10 contracts, settlement date October 29, 2012)		102,630		0.12			347,900

United States WTI crude oil futures contracts
WTI crude oil futures (16 contracts, settlement date May 22, 2012)		168		0.00			1,591,680

United States soybean futures contracts
CBOT soybean futures (12 contracts, settlement date March 14, 2012)		81,898		0.10			724,650
CBOT soybean futures (13 contracts, settlement date November 14, 2012)		82,765		0.10			782,763

United States sugar futures contracts
ICE sugar futures (32 contracts, settlement date April 30, 2012)		82,593		0.10			822,528
ICE sugar futures (27 contracts, settlement date June 29, 2012)		37,908		0.05			682,215
ICE sugar futures (31 contracts, settlement date February 28, 2013)		17,697		0.02			811,059

United States wheat futures contracts
CBOT wheat futures (23 contracts, settlement date May 14, 2012)		66,580		0.08			771,938
CBOT wheat futures (22 contracts, settlement date December 14, 2012)		74,888		0.09			792,000
Total commodity futures contracts	$	3,758,460		4.49	%	$	58,227,628

The accompanying notes are an integral part of these financial statements.

TEUCRIUM COMMODITY TRUST

STATEMENTS OF OPERATIONS

(Unaudited)

	Three months ended			Three months ended			Six months ended			Six months ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Income
Realized and unrealized (loss) gain on trading of commodity futures contracts:
Realized (loss) gain on commodity futures contracts	$	(3,160,334	)	$	2,164,207		$	(5,898,911	)	$	5,531,752
Net change in unrealized appreciation or depreciation on commodity futures contracts		6,035,022			(14,872,239	)		5,530,915			(10,484,790	)
Interest income		15,475			19,554			28,005			41,238
Total income (loss)		2,890,163			(12,688,478	)		(339,991	)		(4,911,800	)

Expenses
Management fees		179,227			297,022			377,658			460,154
Professional fees		407,460			164,464			613,919			292,868
Distribution and marketing fees		423,423			196,039			961,559			296,104
Custodian fees and expenses		163,711			96,631			325,734			162,468
Business permits and licenses fees		15,030			-			16,473			-
General and administrative expenses		133,667			-			143,089			-
Brokerage commissions		19,116			22,439			25,659			31,187
Other expenses		11,216			56,026			42,154			97,399
Total expenses		1,352,850			832,621			2,506,245			1,340,180
Net income (loss)	$	1,537,313		$	(13,521,099	)	$	(2,846,236	)	$	(6,251,980	)

The accompanying notes are an integral part of these financial statements.

TEUCRIUM COMMODITY TRUST

STATEMENTS OF CHANGES IN NET ASSETS

(Unaudited)

	Six months ended			Six months ended
	June 30, 2012			June 30, 2011
Operations
Net loss	$	(2,846,236	)	$	(6,251,980	)

Capital transactions
Issuance of Shares		38,499,917			97,785,160
Cost of shares of the Underlying Funds acquired by Teucrium Agricultural Fund		(2,386,521	)		-
Realized loss on shares of the Underlying Funds sold by Teucrium Agricultural Fund		(969,837	)		-
Redemption of Shares		(42,485,467	)		(6,289,257	)
Total capital transactions		(7,341,908	)		91,495,903
Net change in net assets		(10,188,144	)		85,243,923

Net assets, beginning of period		83,823,568			42,964,439

Net assets, end of period	$	73,635,424		$	128,208,362

The accompanying notes are an integral part of these financial statements.

TEUCRIUM COMMODITY TRUST

STATEMENTS OF CASH FLOWS

(Unaudited)

	Six months ended			Six months ended
	June 30, 2012			June 30, 2011
Cash flows from operating activities:
Net loss	$	(2,846,236	)	$	(6,251,980	)
Adjustments to reconcile net loss to net cash used in operating activities:
Net change in unrealized appreciation or depreciation on commodity futures contracts		(5,530,915	)		10,484,790
Realized loss on shares of the Underlying Funds sold by Teucrium Agricultural
Fund excluded from net loss		(969,837	)		-
Changes in operating assets and liabilities:
Purchase of Underlying Funds acquired by Teucrium Agricultural Fund		(2,386,521	)		-
Collateral, due from broker		5,776,304			(3,499,478	)
Interest receivable		1,450			(330	)
Other assets		(296,406	)		(458,728	)
Collateral, due to broker		16,137			(1,496,045	)
Management fee payable to Sponsor		(23,447	)		77,960
Other liabilities		188,956			138,269
Net cash used in operating activities		(6,070,515	)		(1,005,542	)

Cash flows from financing activities:
Proceeds from sale of Shares, net of change in receivable for shares sold		36,399,141			93,552,625
Redemption of Shares, net of change in payable for shares redeemed		(46,632,478	)		(6,289,257	)
Net cash (used in) provided by financing activities		(10,233,337	)		87,263,368

Net change in cash and cash equivalents		(16,303,852	)		86,257,826
Cash and cash equivalents, beginning of period		80,567,901			39,311,038
Cash and cash equivalents, end of period	$	64,264,049		$	125,568,864

The accompanying notes are an integral part of these financial statements.

NOTES TO FINANCIAL STATEMENTS

June 30, 2012

(Unaudited)

Note 1 – Organization and Operation

Teucrium Commodity Trust (“Trust”), a Delaware statutory trust organized on September 11, 2009, is a series trust consisting of seven series: Teucrium Corn Fund (“CORN”), Teucrium WTI Crude Oil Fund (“CRUD”), Teucrium Natural Gas Fund (“NAGS”), Teucrium Sugar Fund (“CANE”), Teucrium Soybean Fund (“SOYB”), Teucrium Wheat Fund (“WEAT”), and Teucrium Agricultural Fund (“TAGS”). All these series of the Trust are collectively referred to as the “Funds” and singularly as the “Fund.” The Funds issue common units, called the “Shares,” representing fractional undivided beneficial interests in a Fund. The Trust and the Funds operate pursuant to the Trust’s Second Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”).

On June 5, 2010, the Form S-1 for CORN was declared effective by the U.S. Securities and Exchange Commission (“SEC”). On June 8, 2010, four Creation Baskets for CORN were issued representing 200,000 shares and $5,000,000. CORN began trading on the New York Stock Exchange (“NYSE”) Arca on June 9, 2010.

On October 22, 2010, the Forms S-1 for NAGS and CRUD were declared effective by the SEC. On January 31, 2011, four Creation Baskets for NAGS were issued representing 200,000 shares and $5,000,000. NAGS began trading on the NYSE Arca on February 1, 2011. On February 22, 2011, four Creation Baskets for CRUD were issued representing 100,000 shares and $5,000,000. CRUD began trading on the NYSE Arca on February 23, 2011.

On June 17, 2011, the Forms S-1 for CANE, SOYB, and WEAT were declared effective by the SEC. On September 16, 2011, two Creation Baskets were issued for each Fund, representing 100,000 shares and $2,500,000, for CANE, SOYB, and WEAT. On September 19, 2011, CANE, SOYB, and WEAT started trading on the NYSE Arca.

On February 10, 2012, the Form S-1 for TAGS was declared effective by the SEC. On March 27, 2012, six Creation Baskets for TAGS were issued representing 300,000 shares and $15,000,000. TAGS began trading on the NYSE Arca on March 28, 2012.

The specific investment objective of each Fund and information regarding the organization and operation of each Fund are included in each Fund’s financial statements and accompanying notes, as well as in other sections of this Form 10-Q filing. In general, the investment objective of each Fund is to have the daily changes in percentage terms of its Shares’ Net Asset Value (“NAV”) reflect the daily changes in percentage terms of a weighted average of the closing settlement prices for certain Futures Contracts for the commodity specified for that Fund. The investment objective of the TAGS is to have the daily changes in percentage terms of NAV of its common units (“Shares”) reflect the daily changes in percentage terms of a weighted average (the “Underlying Fund Average”) of the NAVs per share of four other commodity pools that are series of the Trust and are sponsored by the Sponsor: CORN, WEAT, SOYB, and CANE (collectively, the “Underlying Funds”). The Underlying Fund Average will have a weighting of 25% to each Underlying Fund, and the Fund’s assets will be rebalanced to maintain the approximate 25% allocation to each Underlying Fund.

The accompanying unaudited financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X promulgated by the SEC and, therefore, do not include all information and footnote disclosures required under accounting principles generally accepted in the United States of America (“GAAP”). The financial information included herein is unaudited; however, such financial information reflects all adjustments which are, in the opinion of management, necessary for the fair presentation of the Trust’s financial statements for the interim period. It is suggested that these interim financial statements be read in conjunction with the financial statements and related notes included in the Trust’s Annual Report on Form 10-K and Form 10-K/A, as applicable. The operating results from January 1, 2012 through June 30, 2012 are not necessarily indicative of the results to be expected for the full year ending December 31, 2012.

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as detailed in the Financial Accounting Standards Board’s Accounting Standards Codification and include the accounts of the Trust, CORN, NAGS, CRUD, CANE, SOYB, WEAT and TAGS. For the periods represented by the financial statements herein the operations of the Trust contain the results of CORN, NAGS, CRUD, SOYB, CANE, WEAT, and TAGS (except as discussed in the Shares of the Underlying Funds Held by the Teucrium Agricultural Fund (TAGS) section) for the months during which each Fund was in operation.

Reclassifications

Certain amounts in prior periods have been reclassified to conform to current period presentation.

Revenue Recognition

Commodity futures contracts are recorded on the trade date. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized appreciation or depreciation on commodity futures contracts are reflected in the statements of operations as the difference between the original contract amount and the fair market value as of the last business day of the year or as of the last date of the financial statements. Changes in the appreciation or depreciation between periods are reflected in the statements of operations. Interest on cash equivalents and deposits with the Futures Commission Merchant are recognized on the accrual basis. The Funds earn interest on its assets denominated in U.S. dollars on deposit with the Futures Commission. In addition, the Funds earn interest on funds held at the custodian at prevailing market rates for such investments.

Brokerage Commissions

Brokerage commissions on all open commodity futures contracts are accrued on a full-turn basis.

Income Taxes

For tax purposes, the Funds will be treated as partnerships. Therefore, the Funds do not record a provision for income taxes because the partners report their share of a Fund’s income or loss on their income tax returns. The financial statements reflect the Funds’ transactions without adjustment, if any, required for income tax purposes.

In accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 740-10-25-6, “Accounting for Uncertainty in Income Taxes,” the Funds are required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The Funds file income tax returns in the U.S. federal jurisdiction, and may file income tax returns in various U.S. states and foreign jurisdictions. The Funds are subject to income tax examinations by major taxing authorities for all tax years since inception. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in the Funds recording a tax liability that reduces net assets. Based on their analysis, the Funds have determined that they have not incurred any liability for unrecognized tax benefits as of June 30, 2012 and December 31, 2011. However, the Funds’ conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, ongoing analysis of and changes to tax laws, regulations, and interpretations thereof.

The Funds recognize interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed. No interest expense or penalties have been recognized as of and for the periods ended June 30, 2012 and 2011 and December 31, 2011.

The Funds may be subject to potential examination by U.S. federal, U.S. state, or foreign jurisdictional authorities in the area of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions, and compliance with U.S. federal, U.S. state and foreign tax laws. The Funds’ management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.

Creations and Redemptions

Authorized Purchasers may purchase Creation Baskets from each Fund. The amount of the proceeds required to purchase a Creation Basket will be equal to the NAV of the shares in the Creation Basket determined as of 4:00 p.m. New York time on the day the order to create the basket is properly received.

Authorized Purchasers may redeem shares from each Fund only in blocks of shares called “Redemption Baskets.” The amount of the redemption proceeds for a Redemption Basket will be equal to the NAV of the shares in the Redemption Basket determined as of 4:00 p.m. New York time on the day the order to redeem the basket is properly received.

Each Fund receives or pays the proceeds from shares sold or redeemed within three business days after the trade date of the purchase or redemption. The amounts due from Authorized Purchasers are reflected in the statements of assets and liabilities as receivable for shares sold. Amounts payable to Authorized Purchasers upon redemption are reflected in the statements of assets and liabilities as payable for shares redeemed.

There are a minimum number of baskets and associated shares specified for each Fund in the respective most recent Form S-1. Once the minimum number of baskets is reached, there can be no more redemptions until there has been a creation basket. These minimum levels are as follows:

CORN: 50,000 shares representing 2 baskets

NAGS: 100,000 shares representing 2 baskets

CRUD: 50,000 shares representing 2 baskets

SOYB: 50,000 shares representing 2 baskets

CANE: 50,000 shares representing 2 baskets

WEAT: 50,000 shares representing 2 baskets

TAGS: 50,000 shares representing 1 basket

Cash Equivalents

Cash equivalents are highly-liquid investments with original maturity dates of three months or less at inception. The Trust reported its cash equivalents in the statements of assets and liabilities at market value, or at carrying amounts that approximate fair value, because of their highly-liquid nature and short-term maturities. The Trust has a substantial portion of its assets on deposit with banks. Assets deposited with the bank may, at times, exceed federally insured limits. The Trust had a balance of $49,264,494 and $60,567,971 in money market funds at June 30, 2012 and December 31, 2011, respectively; these balances are included in cash and cash equivalents on the statements of assets and liabilities. The Trust also had investments in United States Treasury Bills with a maturity of three months or less with a fair value of $14,999,555 and $19,999,830 on June 30, 2012 and December 31, 2011, respectively.

Collateral, Due from/to Broker

Margin is the minimum amount of funds that must be deposited by a commodity interest trader with the trader’s broker to initiate and maintain an open position in futures contracts. A margin deposit acts to assure the trader’s performance of the futures contracts purchased or sold. Futures contracts are customarily bought and sold on initial margin that represents a very small percentage of the aggregate purchase or sales price of the contract. Because of such low margin requirements, price fluctuations occurring in the futures markets may create profits and losses that, in relation to the amount invested, are greater than are customary in other forms of investment or speculation. As discussed below, adverse price changes in the futures contract may result in margin requirements that greatly exceed the initial margin. In addition, the amount of margin required in connection with a particular futures contract is set from time to time by the exchange on which the contract is traded and may be modified from time to time by the exchange during the term of the contract. Brokerage firms, such as the Funds’ clearing brokers, carrying accounts for traders in commodity interest contracts generally require higher amounts of margin as a matter of policy to further protect themselves. Over-the-counter trading generally involves the extension of credit between counterparties, so the counterparties may agree to require the posting of collateral by one or both parties to address credit exposure.

When a trader purchases an option, there is no margin requirement; however, the option premium must be paid in full. When a trader sells an option, on the other hand, he or she is required to deposit margin in an amount determined by the margin requirements established for the underlying interest and, in addition, an amount substantially equal to the current premium for the option. The margin requirements imposed on the selling of options, although adjusted to reflect the probability that out-of-the-money options will not be exercised, can in fact be higher than those imposed in dealing in the futures markets directly. Complicated margin requirements apply to spreads and conversions, which are complex trading strategies in which a trader acquires a mixture of options positions and positions in the underlying interest.

Ongoing or “maintenance” margin requirements are computed each day by a trader’s clearing broker. When the market value of a particular open futures contract changes to a point where the margin on deposit does not satisfy maintenance margin requirements, a margin call is made by the broker. If the margin call is not met within a reasonable time, the broker may close out the trader’s position. With respect to the Funds’ trading, the Funds (and not its shareholders personally) are subject to margin calls.

Finally, many major U.S. exchanges have passed certain cross margining arrangements involving procedures pursuant to which the futures and options positions held in an account would, in the case of some accounts, be aggregated, and margin requirements would be assessed on a portfolio basis, measuring the total risk of the combined positions.

Due from/to Broker for Securities Transactions

Due from/to broker for investments in securities are securities transactions pending settlement. The Trust and TAGS are subject to credit risk to the extent any broker with whom it conducts business is unable to fulfill contractual obligations on its behalf. The management of the Trust and the Funds monitors the financial condition of such brokers and does not anticipate any losses from these counterparties. Since the inception of the Fund, the principal broker through which the Trust and TAGS clear securities transactions for TAGS is the Bank of New York Mellon Capital Markets.

Shares of the Underlying Funds Held by the Teucrium Agricultural Fund (TAGS)

The investment objective of TAGS is to have the daily changes in percentage terms of the Net Asset Value (“NAV”) of its common units (“Shares”) reflect the daily changes in percentage terms of a weighted average (the “Underlying Fund Average”) of the NAVs per share of four other commodity pools that are series of the Trust and are sponsored by the Sponsor: the Teucrium Corn Fund, the Teucrium Wheat Fund, the Teucrium Soybean Fund and the Teucrium Sugar Fund (collectively, the “Underlying Funds”). The Underlying Fund Average will have a weighting of 25% to each Underlying Fund, and the Fund’s assets will be rebalanced, generally on a daily basis, to maintain the approximate 25% allocation to each Underlying Fund.

As such, TAGS will buy, sell and hold as part of its normal operations shares of the four Underlying Funds. The Trust excludes the shares of the other series of the Trust owned by the Teucrium Agricultural Fund from its statements of assets and liabilities. The Trust excludes the net change in unrealized appreciation or depreciation on securities owned by the Teucrium Agricultural Fund from its statements of operations. Upon the sale of the Underlying Funds by the Teucrium Agricultural Fund, the Trust includes any realized gain or loss in its statements of changes in net assets.

Sponsor Fee and Allocation of Expenses

The Sponsor is responsible for investing the assets of the Funds in accordance with the objectives and policies of each Fund. In addition, the Sponsor arranges for one or more third parties to provide administrative, custodial, accounting, transfer agency and other necessary services to the Trust and the Funds. For the performance of this service, the Funds, except for TAGS which has no such fee, are contractually obligated to pay a monthly management fee to the Sponsor, based on average daily net assets, at a rate equal to 1.00% per annum. The Funds pay for all brokerage fees, taxes and other expenses, including licensing fees for the use of intellectual property, registration or other fees paid to the SEC, the Financial Industry Regulatory Authority (“FINRA”), formerly the National Association of Securities Dealers, or any other regulatory agency in connection with the offer and sale of subsequent Shares, after its initial registration, and all legal, accounting, printing and other expenses associated therewith. The Funds also pay the fees and expenses associated with the Trust’s tax accounting and reporting requirements. Certain aggregate expenses common to all Funds are allocated by the Sponsor to the respective funds based on activity drivers deemed most appropriate by the Sponsor for such expenses. All asset-based fees and expenses for the Funds are calculated on the prior day’s net assets.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of the revenue and expenses during the reporting period. Actual results could differ from those estimates.

Fair Value - Definition and Hierarchy

In accordance with U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.

In determining fair value, the Trust uses various valuation approaches. In accordance with U.S. GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Trust. Unobservable inputs reflect the Trust’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows:

Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 securities. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment.

Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

The availability of valuation techniques and observable inputs can vary from security to security and is affected by a wide variety of factors including, the type of security, whether the security is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the securities existed. Accordingly, the degree of judgment exercised by the Fund in determining fair value is greatest for securities categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the

fair value hierarchy, within which the fair value measurement in its entirety falls, is determined based on the lowest level input that is significant to the fair value measurement.

Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Trust’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Trust uses prices and inputs that are current as of the measurement date, including periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many securities. This condition could cause a security to be reclassified to a lower level within the fair value hierarchy. For instance, when Corn Futures Contracts on the Chicago Board of Trade (“CBOT”) are not actively trading due to a “limit-up” or ‘limit-down” condition, meaning that the change in the Corn Futures Contracts has exceeded the limits established, the Trust and the Fund will revert to alternative verifiable sources of valuation of its assets. When such a situation exists on a quarter close, the Sponsor will calculate the NAV on a particular day using the Level 1 valuation, but will later recalculate the NAV for the impacted Fund based upon the valuation inputs from these alternative verifiable sources (Level 2 or Level 3) and will report such NAV in its applicable financial statements and reports.

On June 30, 2012 and December 31, 2011, in the opinion of the Trust, the reported value at the close of the market for each commodity contract fairly reflected the value of the futures and no alternative valuations were required.

The Funds and the Trust record their derivative activities at fair value. Gains and losses from derivative contracts are included in the statements of operations. Derivative contracts include futures contracts related to commodity prices. Futures, which are listed on a national securities exchange, such as the CBOT or the New York Mercantile Exchange (“NYMEX”), or reported on another national market, are generally categorized in Level 1 of the fair value hierarchy. OTC derivatives contracts (such as forward and swap contracts), which may be valued using models, depending on whether significant inputs are observable or unobservable, are categorized in Levels 2 or 3 of the fair value hierarchy.

Investments in the securities of the Underlying Funds are freely tradable and listed on the NYSE Arca. These investments are valued at the NAV of the Underlying Fund as of the valuation date as calculated by the administrator based on the exchange-quoted prices of the commodity futures contracts held by the Underlying Fund.

New Accounting Pronouncements

In December 2011, the FASB issued ASU No. 2011-11, “Balance Sheet (Topic 210): Amendments of the FASB Accounting Standards Codification and Disclosures about Offsetting Assets and Liabilities in U.S. GAAP and IFRS.” ASU No. 2011-11 clarifies existing requirements for balance sheet offsetting and for disclosures about the offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position in converged guidance of the FASB and the International Accounting Standards Board. The amendments are to be applied retrospectively for all comparative periods presented. For public entities, the amendments are effective for annual reporting periods beginning on or after January 1, 2013. The implementation of ASU No. 2011-11 will not be adopted prior to January 1, 2013, and we are evaluating the material impacts on the financial statement disclosures for the Trust or the Funds.

Note 3 – Fair Value Measurements

The Trust’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in the Trust’s significant accounting policies in Note 2. The following table presents information about the Trust’s assets and liabilities measured at fair value as of June 30, 2012 and December 31, 2011:

June 30, 2012

							Balance
							as of
							June 30,
Assets:	Level 1		Level 2		Level 3		2012
Cash equivalents	$	64,264,049	$	-	$	-	$	64,264,049
Commodity futures contracts
Corn futures contracts		3,935,961		-		-		3,935,961
Soybean futures contracts		148,038		-		-		148,038
Wheat futures contracts		318,050		-		-		318,050
Total	$	68,666,098	$	-	$	-	$	68,666,098

							Balance
							as of
							June 30,
Liabilities:	Level 1		Level 2		Level 3		2012
Commodity futures contracts
WTI crude oil futures contracts	$	170,533	$	-	$	-	$	170,533
Natural gas futures contracts		272,363		-		-		272,363
Sugar futures contracts		60,984		-		-		60,984
Total	$	503,880	$	-	$	-	$	503,880

December 31, 2011

							Balance
							as of
							December 31,
Assets:	Level 1		Level 2		Level 3		2011
Cash equivalents	$	80,567,801		-		-	$	80,567,801
Commodity futures contracts
Corn futures contracts		1,928,408		-		-		1,928,408
WTI crude oil futures contracts		116,142		-		-		116,142
Soybean futures contracts		9,994						9,994
Wheat futures contracts		71,170		-		-		71,170
Total	$	82,693,515	$	-	$	-	$	82,693,515

							Balance
							as of
							December 31,
	Level 1		Level 2		Level 3		2011
Liabilities:
Commodity futures contracts
Corn futures contracts	$	2,711,523	$	-	$	-	$	2,711,523
Natural gas futures contracts		602,440		-		-		602,440
WTI crude oil futures contracts		168		-		-		168
Soybean futures contracts		164,663		-		-		164,663
Sugar futures contracts		138,198		-		-		138,198
Wheat futures contracts		141,468		-		-		141,468
Total	$	3,758,460	$	-	$	-	$	3,758,460

There were no transfers into and out of each level of the fair value hierarchy for the commodity futures contracts valued using alternative verifiable sources due to a "limit-down" or “limit-up” conditions for the period January 1, 2012 through June 30, 2012.

Transfers into and out of each level of the fair value hierarchy for the corn futures contracts valued using alternative verifiable sources due to a "limit-down" condition for the period January 1, 2011 through June 30, 2011 were as follows:

Transfers

into

out of

into

out of

into

out of

Level 1

Level 2

Level 3

Assets (at fair value)

Derivative contracts

Corn future contracts

9,140,288

Transfers

into

out of

into

out of

into

out of

Level 1

Level 2

Level 3

Liabilities (at fair value)

Derivative contracts

Corn future contracts

5,938,713

Note 4 – 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 six months ended June 30, 2011, the Funds invested only in commodity futures contracts specifically related to each Fund. For the six months ended June 30, 2012, the Funds invested in commodity futures contracts. Cleared Swaps have standardized terms similar to, and are priced by reference to, a corresponding Benchmark Component Futures Contract. Additionally, Other Commodity Interests that do not have standardized terms and are not exchange-traded, referred to as “over-the-counter” Interests, can generally be structured as the parties to the Commodity Interest contract desire. Therefore, each Fund might enter into multiple Cleared Swaps and/or over-the-counter Interests intended to exactly replicate the performance of each of the Benchmark Component Futures Contracts for the Fund, or a single over-the-counter Interest designed to replicate the performance of the Benchmark as a whole. Assuming that there is no default by a counterparty to an over-the-counter Interest, the performance of the Interest will necessarily correlate exactly with the performance of the Benchmark or the applicable Benchmark Component Futures Contract.

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 Futures Commission Merchant (“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 tables identify the fair value amounts of derivative instruments included in the statements 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 gains and losses on trading of commodity futures contracts, categorized by primary underlying risk, for the periods from January 1, 2012 to June 30, 2012 and 2011, and for the periods from April 1, 2012 to June 30, 2012 and 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
Corn futures contracts	$	3,935,961	$	-			3,935,961
Natural gas futures contracts		-		(272,363	)		(272,363	)
WTI crude oil futures contracts		-		(170,533	)		(170,533	)
Soybean futures contracts		148,038		-			148,038
Sugar futures contracts		-		(60,984	)		(60,984	)
Wheat futures contracts		318,050		-			318,050
Total commodity futures contracts	$	4,402,049	$	(503,880	)		3,898,169

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

Primary Underlying Risk	Asset derivatives		Liability derivatives			Net derivatives
Commodity price
Corn futures contracts	$	1,928,408	$	(2,711,523	)		(783,115	)
Natural gas futures contracts		-		(602,440	)		(602,440	)
WTI crude oil futures contracts		116,142		(168	)		115,974
Soybean futures contracts		9,994		(164,663	)		(154,669	)
Sugar futures contracts		-		(138,198	)		(138,198	)
Wheat futures contracts		71,170		(141,468	)		(70,298	)
Total commodity futures contracts	$	2,125,714	$	(3,758,460	)		(1,632,746	)

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

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

	Realized (loss) Gain on			Net Change in Unrealized Gain
Primary Underlying Risk	Derivative Instruments			(loss) on Derivative Instruments
Commodity price
Corn futures contracts	$	(4,391,819	)	$	4,719,076
Natural gas futures contracts		(567,888	)		330,077
WTI crude oil futures contracts		43,347			(286,507	)
Soybean futures contracts		77,981			302,707
Sugar futures contracts		(596,310	)		77,214
Wheat futures contracts		(464,222	)		388,348
Total commodity futures contracts	$	(5,898,911	)	$	5,530,915

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

	Realized Gain (loss) on			Net Change in Unrealized Loss
Primary Underlying Risk	Derivative Instruments			on Derivative Instruments
Commodity price
Corn futures contracts	$	5,675,823		$	(10,262,443	)
Natural gas futures contracts		(327,940	)		(57,008	)
WTI crude oil futures contracts		183,869			(165,339	)
Total commodity futures contracts	$	5,531,752		$	(10,484,790	)

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

	Realized (loss) Gain on			Net Change in Unrealized Gain (loss)
Primary Underlying Risk	Derivative Instruments			on Derivative Instruments
Commodity price
Corn futures contracts	$	(2,255,455	)	$	6,161,715
Natural gas futures contracts		(63,608	)		197,507
WTI crude oil futures contracts		37,737			(511,027	)
Soybean futures contracts		67,640			(24,765	)
Sugar futures contracts		(586,576	)		(76,531	)
Wheat futures contracts		(360,072	)		288,123
Total commodity futures contracts	$	(3,160,334	)	$	6,035,022

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

	Realized Gain (loss) on			Net Change in Unrealized Loss
Primary Underlying Risk	Derivative Instruments			on Derivative Instruments
Commodity price
Corn futures contracts	$	1,989,590		$	(14,224,512	)
Natural gas futures contracts		(3,752	)		(100,528	)
WTI crude oil futures contracts		178,369			(547,199	)
Total commodity futures contracts	$	2,164,207		$	(14,872,239	)

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
Corn futures contracts	$	61,966,713		2,035
Natural gas futures contracts		3,556,000		111
WTI crude oil futures contracts		1,932,740		22
Soybean futures contracts		2,452,425		36
Sugar futures contracts		959,190		40
Wheat futures contracts		2,777,413		71
Total commodity futures contracts	$	73,644,481		2,315

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

	Long Exposure
	Notional		Number
Primary Underlying Risk	Amounts		of Contracts
Commodity price
Corn futures contracts	$	71,289,525		2,260
Natural gas futures contracts		1,383,770		43
WTI crude oil futures contracts		4,481,380		46
Soybean futures contracts		2,177,038		36
Sugar futures contracts		2,315,802		90
Wheat futures contracts		2,250,188		65
Total commodity futures contracts	$	83,897,703		2,540

Note 5 - Organizational and Offering Costs

Expenses incurred in organizing of the Trust and the initial offering of the shares, including applicable SEC registration fees, were borne directly by the Sponsor for the Funds and will be borne directly by the Sponsor for any series of the Trust which is not yet operating or will be issued in the future. The Trust will not be obligated to reimburse the Sponsor.

Note 6 – Subsequent Events

The Trust evaluates subsequent events through the date when financial statements are filed with the SEC.

For the period July 1, 2012 through August 9, 2012, the following subsequent events transpired for each of the series of the Trust:

CORN: Nothing to Report

NAGS: Nothing to Report

CRUD: Nothing to Report

SOYB: Nothing to Report

CANE: On July 10, 2012, there was a Creation Basket for CANE which brought the outstanding number of shares above the minimum number of baskets outstanding.

WEAT: Nothing to Report

TAGS: On July 27, 2012, there was a Creation Basket for TAGS which brought the outstanding number of shares above the minimum number of baskets outstanding. On August 2, 2012, there was a Redemption Basket for TAGS which brought the number of baskets outstanding back to the minimum of 50,000 shares.

TEUCRIUM CORN FUND

STATEMENTS OF ASSETS AND LIABILITIES

	June 30, 2012		December 31, 2011
	(Unaudited)
Assets

Equity in BNY Mellon trading accounts:
Cash and cash equivalents	$	53,821,290	$	69,022,336
Corn futures contracts		3,935,961		1,928,408
Collateral, due from broker		1,737,301		6,910,552
Receivable for shares sold		2,100,775		-
Interest receivable		772		2,086
Other assets		558,254		342,859
Total assets		62,154,353		78,206,241

Liabilities

Payable for shares redeemed		-		4,147,011
Corn futures contracts		-		2,711,523
Management fee payable to Sponsor		42,048		64,423
Other liabilities		139,258		14,763
Total liabilities		181,306		6,937,720

Net assets	$	61,973,047	$	71,268,521

Shares outstanding		1,475,004		1,700,004

Net asset value per share	$	42.02	$	41.92

Market value per share	$	42.10	$	41.98

The accompanying notes are an integral part of these financial statements.

TEUCRIUM CORN FUND

SCHEDULE OF INVESTMENTS

June 30, 2012

(Unaudited)

	Fair		Percentage of			Principal
Description: Assets	Value		Net Assets			Amount

Cash equivalents
United States Treasury obligations
U.S. Treasury bills, 0.050%, due July 19, 2012	$	9,999,820		16.14	%	$	10,000,000
U.S. Treasury bills, 0.080%, due August 16, 2012		4,999,735		8.07			5,000,000
Total U.S. Treasury obligations		14,999,555		24.21			15,000,000

Money market funds
Dreyfus Cash Management Plus		38,821,735		62.65

Total cash equivalents	$	53,821,290		86.86	%

					Notional
					Amount
Commodity futures contracts
United States corn futures contracts
CBOT corn futures (690 contracts, settlement date September 14, 2012)	$	1,409,275	2.27	%	$	21,683,250
CBOT corn futures (588 contracts, settlement date December 14, 2012)		986,086	1.59			18,661,650
CBOT corn futures (757 contracts, settlement date December 13, 2013)		1,540,600	2.49			21,621,813
Total commodity futures contracts	$	3,935,961	6.35	%	$	61,966,713

The accompanying notes are an integral part of these financial statements.

TEUCRIUM CORN FUND

SCHEDULE OF INVESTMENTS

December 31, 2011

	Fair		Percentage of			Principal
Description: Assets	Value		Net Assets			Amount

Cash equivalents
United States Treasury obligations
U.S. Treasury bills, 0.010%, due January 19, 2012	$	9,999,950		14.03	%	$	10,000,000
U.S. Treasury bills, 0.000%, due February 16, 2012		9,999,880		14.03			10,000,000
Total U.S. Treasury obligations		19,999,830		28.06			20,000,000

Money market funds
Dreyfus Cash Management Plus		49,022,506		68.79

Total cash equivalents	$	69,022,336		96.85	%

					Notional
					Amount
Commodity futures contracts
United States corn futures contracts
CBOT corn futures (648 contracts, settlement date July 13, 2012)	$	1,928,408	2.71	%	$	21,424,500

	Fair		Percentage of			Notional
Description: Liabilities	Value		Net Assets			Amount

Commodity futures contracts
United States corn futures contracts
CBOT corn futures (763 contracts, settlement date May 14, 2012)	$	2,478,427		3.48	%	$	24,978,713
CBOT corn futures (849 contracts, settlement date December 14, 2012)		233,096		0.33			24,886,312
	$	2,711,523		3.81	%	$	49,865,025

The accompanying notes are an integral part of these financial statements.

TEUCRIUM CORN FUND

STATEMENTS OF OPERATIONS

(Unaudited)

	Three months ended			Three months ended			Six months ended			Six months ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Income
Realized and unrealized (loss) gain on trading of commodity futures contracts:
Realized (loss) gain on commodity futures contracts	$	(2,255,455	)	$	1,989,590		$	(4,391,819	)	$	5,675,823
Net change in unrealized appreciation or depreciation on commodity futures contracts		6,161,715			(14,224,512	)		4,719,076			(10,262,443	)
Interest income		11,628			18,238			22,090			38,720
Total income (loss)		3,917,888			(12,216,684	)		349,347			(4,547,900	)

Expenses
Management fees		141,648			284,223			312,251			438,468
Professional fees		229,775			93,057			431,162			183,795
Distribution and marketing fees		291,200			137,329			728,330			206,427
Custodian fees and expenses		32,211			32,211			64,421			64,067
Business permits and licenses fees		10,010			-			11,296			-
General and administrative expenses		101,010			-			110,320			-
Brokerage commissions		13,902			22,326			18,794			30,418
Other expenses		4,504			27,336			35,245			53,576
Total expenses		824,260			596,482			1,711,819			976,751
Net income (loss)	$	3,093,628		$	(12,813,166	)	$	(1,362,472	)	$	(5,524,651	)

Net income (loss) per share	$	2.85		$	(3.87	)	$	0.10		$	1.33
Net income (loss) per weighted average share	$	2.05		$	(5.05	)	$	(0.85	)	$	(2.73	)
Weighted average shares outstanding		1,511,268			2,537,367			1,599,867			2,026,523

The accompanying notes are an integral part of these financial statements.

TEUCRIUM CORN FUND

STATEMENTS OF CHANGES IN NET ASSETS

(Unaudited)

	Six months ended			Six months ended
	June 30, 2012			June 30, 2011
Operations
Net loss	$	(1,362,472	)	$	(5,524,651	)
Capital transactions
Issuance of Shares		10,242,344			87,785,060
Redemption of Shares		(18,175,346	)		(4,049,849	)
Total capital transactions		(7,933,002	)		83,735,211
Net change in net assets		(9,295,474	)		78,210,560

Net assets, beginning of period		71,268,521			42,963,939

Net assets, end of period	$	61,973,047		$	121,174,499

Net asset value per share at beginning of period	$	41.92		$	39.06

At end of period	$	42.02		$	40.39

The accompanying notes are an integral part of these financial statements.

TEUCRIUM CORN FUND

STATEMENTS OF CASH FLOWS

(Unaudited)

	Six months ended			Six months ended
	June 30, 2012			June 30, 2011
Cash flows from operating activities:
Net loss	$	(1,362,472	)	$	(5,524,651	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Net change in unrealized appreciation or depreciation on commodity futures contracts		(4,719,076	)		10,262,443
Changes in operating assets and liabilities:
Collateral, due from broker		5,173,251			(2,712,646	)
Interest receivable		1,314			15
Other assets		(215,395	)		(250,865	)
Collateral, due to broker		-			(1,496,045	)
Management fee payable to Sponsor		(22,375	)		73,939
Other liabilities		124,495			11,110
Net cash (used in) provided by operating activities		(1,020,258	)		363,300

Cash flows from financing activities:
Proceeds from sale of Shares, net of change in receivable for shares sold		8,141,569			83,552,525
Redemption of Shares, net of change in payable for shares redeemed		(22,322,357	)		(4,049,849	)
Net cash (used in) provided by financing activities		(14,180,788	)		79,502,676

Net change in cash and cash equivalents		(15,201,046	)		79,865,976
Cash and cash equivalents, beginning of period		69,022,336			39,310,538
Cash and cash equivalents, end of period	$	53,821,290		$	119,176,514

The accompanying notes are an integral part of these financial statements.

NOTES TO FINANCIAL STATEMENTS

June 30, 2012

(Unaudited)

Note 1 – Organization and Operation

Teucrium Corn Fund (referred to herein as “CORN,” or the “Fund”) is a commodity pool that is a series of Teucrium Commodity Trust (“Trust”), a Delaware statutory trust formed on September 11, 2009. The Fund issues common units, called the “Shares,” representing fractional undivided beneficial interests in the Fund. The Fund continuously offers Creation Baskets consisting of 25,000 Shares at their Net Asset Value (“NAV”) to “Authorized Purchasers” through Foreside Fund Services, LLC, which is the distributor for the Fund (the “Distributor”). Authorized Purchasers sell such Shares, which are listed on the New York Stock Exchange (“NYSE”) Arca under the symbol “CORN,” to the public at per-Share offering prices that reflect, among other factors, the trading price of the Shares on the NYSE Arca, the NAV of the Fund at the time the Authorized Purchaser purchased the Creation Baskets and the NAV at the time of the offer of the Shares to the public, the supply of and demand for Shares at the time of sale, and the liquidity of the markets for corn interests. The Fund’s Shares trade in the secondary market on the NYSE Arca at prices that are lower or higher than their NAV per Share.

The investment objective of the Fund is to have the daily changes in percentage terms of the Shares’ NAV reflect the daily changes in percentage terms of a weighted average of the closing settlement prices for three futures contracts for corn (“Corn Futures Contracts”) that are traded on the Chicago Board of Trade (“CBOT”), specifically (1) the second-to-expire CBOT Corn Futures Contract, weighted 35%, (2) the third-to-expire CBOT Corn Futures Contract, weighted 30%, and (3) the CBOT Corn Futures Contract expiring in the December following the expiration month of the third-to-expire contract, weighted 35%. (This weighted average of the three referenced Corn Futures Contracts is referred to herein as the “Benchmark,” and the three Corn Futures Contracts that at any given time make up the Benchmark are referred to herein as the “Benchmark Component Futures Contracts.”

The Fund commenced investment operations on June 9, 2010 and has a fiscal year ending on December 31. The Fund’s sponsor is Teucrium Trading, LLC (the “Sponsor”). The Sponsor is responsible for the management of the Fund. The Sponsor is a member of the National Futures Association (the “NFA”) and became a commodity pool operator registered with the Commodity Futures Trading Commission (the “CFTC”) effective November 10, 2009.

On June 5, 2010, the Fund’s initial registration of 30,000,000 shares the Form S-1 was declared effective by the U.S. Securities and Exchange Commission (“SEC”). On June 9, 2010, the Fund listed its shares on the NYSE Arca under the ticker symbol “CORN.” On the day prior to that, the Fund issued 200,000 shares in exchange for $5,000,000 at the Fund’s initial NAV of $25 per share. The Fund also commenced investment operations on June 9, 2010 by purchasing commodity futures contracts traded on the Chicago Board of Trade (“CBOT”).

The accompanying unaudited financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X promulgated by the SEC and, therefore, do not include all information and footnote disclosures required under accounting principles generally accepted in the United States of America (“GAAP”). The financial information included herein is unaudited; however, such financial information reflects all adjustments which are, in the opinion of management, necessary for the fair presentation of the Fund’s financial statements for the interim period. It is suggested that these interim financial statements be read in conjunction with the financial statements and related notes included in the Trust’s Annual Report on Form 10-K and Form 10-K/A, as well as the most recent amendment to Form S-1, dated May 1, 2012, as applicable. The operating results from January 1, 2012 through June 30, 2012 are not necessarily indicative of the results to be expected for the full year ending December 31, 2012.

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as detailed in the Financial Accounting Standards Board’s Accounting Standards Codification.

Reclassifications

Certain amounts in prior periods have been reclassified to conform to current period presentation.

Revenue Recognition

Commodity futures contracts are recorded on the trade date. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized appreciation or depreciation on commodity futures contracts are reflected in the statements of operations as the difference between the original contract amount and the fair market value as of the last business day of the year or as of the last date of the financial statements. Changes in the appreciation or depreciation between periods are reflected in the statements of operations. Interest on cash equivalents and deposits with the Futures Commission Merchant are recognized on the accrual basis. The Fund earns interest on its assets denominated in U.S. dollars on deposit with the Futures Commission Merchant. In addition, the Fund earns interest on funds held at the custodian at prevailing market rates for such investments.

Brokerage Commissions

Brokerage commissions on all open commodity futures contracts are accrued on a full-turn basis.

Income Taxes

In accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification Topic (“ASC”) 740-10-25-6, “Accounting for Uncertainty in Income Taxes,” the Fund is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The Fund files an income tax return in the U.S. federal jurisdiction, and may file income tax returns in various U.S. states and foreign jurisdictions. The n Fund is subject to income tax examinations by major taxing authorities for all tax years since inception. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in the Fund recording a tax liability that reduces net assets. Based on its analysis, the Fund has determined that it has not incurred any liability for unrecognized tax benefits as of June 30, 2012 and December 31, 2011. However, the Fund’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, ongoing analysis of and changes to tax laws, regulations, and interpretations thereof.

The Fund recognizes interest accrued related to unrecognized tax benefits and penalties related to unrecognized tax benefits in income tax fees payable, if assessed. No interest expense or penalties have been recognized as of and for the periods ended June 30, 2012 and 2011 and December 31, 2011.

The Fund may be subject to potential examination by U.S. federal, U.S. state, or foreign jurisdictional authorities in the area of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions, and compliance with U.S. federal, U.S. state and foreign tax laws. The Fund’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.

Creations and Redemptions

Authorized Purchasers may purchase Creation Baskets consisting of 25,000 shares from CORN. The amount of the proceeds required to purchase a Creation Basket will be equal to the NAV of the shares in the Creation Basket determined as of 4:00 p.m. New York time on the day the order to create the basket is properly received.

Authorized Purchasers may redeem shares from the Fund only in blocks of 25,000 shares called “Redemption Baskets.” The amount of the redemption proceeds for a Redemption Basket will be equal to the NAV of the shares in the Redemption Basket determined as of 4:00 p.m. New York time on the day the order to redeem the basket is properly received.

The size of a Creation Basket and a Redemption basket was changed effective February 1, 2012 from 100,000 to 50,000 shares. On March 5, 2012 the size of a Creation Basket and a Redemption Basket was changed again from 50,000 to 25,000 shares.

The Fund receives or pays the proceeds from shares sold or redeemed within three business days after the trade date of the purchase or redemption. The amounts due from Authorized Purchasers are reflected in the Fund’s statements of assets and liabilities as receivable for shares sold. Amounts payable to Authorized Purchasers upon redemption are reflected in the Fund’s statements of assets and liabilities as payable for shares redeemed.

As outlined in the most recent Amendment to the Form S-1 dated May 1, 2012, 50,000 represents two Redemption Baskets for the Fund and a minimum level of shares.

Allocation of Shareholder Income and Losses

Profit or loss is allocated among the shareholders of the Fund in proportion to the number of shares each shareholder holds as of the close of each month.

Cash Equivalents

Cash equivalents are highly-liquid investments with original maturity dates of three months or less at inception. The Fund reported its cash equivalents in the statements of assets and liabilities at market value, or at carrying amounts that approximate fair value, because of their highly-liquid nature and short-term maturities. The Fund has a substantial portion of its assets on deposit with banks. Assets deposited with the bank may, at times, exceed federally insured limits. The Fund had a balance of $38,821,735 and $49,022,506 in money market funds at June 30, 2012 and December 31, 2011, respectively; these balances are included in cash and cash equivalents on the statements of assets and liabilities. The Fund held $14,999,555 and $19,999,830 in United States Treasury Bills with a maturity date of three months or less at June 30, 2012 and December 31, 2011, respectively; these balances are included in cash and cash equivalents on the statements of assets and liabilities.

Collateral, Due from/to Broker

Margin is the minimum amount of funds that must be deposited by a commodity interest trader with the trader’s broker to initiate and maintain an open position in futures contracts. A margin deposit acts to assure the trader’s performance of the futures contracts purchased or sold. Futures contracts are customarily bought and sold on initial margin that represents a very small percentage of the aggregate purchase or sales price of the contract. Because of such low margin requirements, price fluctuations occurring in the futures markets may create profits and losses that, in relation to the amount invested, are greater than are customary in other forms of investment or speculation. As discussed below, adverse price changes in the futures contract may result in margin requirements that greatly exceed the initial margin. In addition, the amount of margin required in connection with a particular futures contract is set from time to time by the exchange on which the contract is traded and may be modified from time to time by the exchange during the term of the contract. Brokerage firms, such as the Fund’s clearing brokers, carrying accounts for traders in commodity interest contracts generally require higher amounts of margin as a matter of policy to further protect themselves. Over-the-counter trading generally involves the extension of credit between counterparties, so the counterparties may agree to require the posting of collateral by one or both parties to address credit exposure.

Ongoing or “maintenance” margin requirements are computed each day by a trader’s clearing broker. When the market value of a particular open futures contract changes to a point where the margin on deposit does not satisfy maintenance margin requirements, a margin call is made by the broker. If the margin call is not met within a reasonable time, the broker may close out the trader’s position. With respect to the Fund’s trading, the Fund (and not its shareholders personally) is subject to margin calls.

Finally, many major U.S. exchanges have passed certain cross margining arrangements involving procedures pursuant to which the futures and options positions held in an account would, in the case of some accounts, be aggregated and margin requirements would be assessed on a portfolio basis, measuring the total risk of the combined positions.

Calculation of Net Asset Value

The Fund’s NAV is calculated by:

•

Taking the current market value of its total assets,

•

Subtracting any liabilities, and

The administrator, the Bank of New York Mellon, calculates the NAV of the Fund once each trading day. It calculates the NAV as of the earlier of the close of the NYSE or 4:00 p.m. New York time. The NAV for a particular trading day is released after 4:15 p.m. New York time.

In determining the value of Corn Futures Contracts, the administrator uses the CBOT closing price (typically 3:00 p.m. New York time). The administrator determines the value of all other Fund investments as of the earlier of the close of the NYSE or 4:00 p.m. New York time. The

value of over-the-counter corn interests is determined based on the value of the commodity or futures contract underlying such corn interest, except that a fair value may be determined if the Sponsor believes that the Fund is subject to significant credit risk relating to the counterparty to such corn interest. For purposes of financial statements and reports, the Sponsor will recalculate the NAV where necessary to reflect the “fair value” of a Futures Contract when the Futures Contract closes at its price fluctuation limit for the day. Treasury securities held by the Fund are valued by the administrator using values received from recognized third-party vendors and dealer quotes. NAV includes any unrealized profit or loss on open corn interests and any other income or expense accruing to the Fund but unpaid or not received by the Fund.

Market value per share represents the closing price on the last trading day of the quarter as reported by the NYSE Arca. If such a closing price is not available, the bid/ask midpoint at 4 p.m. as reported by the NYSE Arca was used.

Sponsor Fee and Allocation of Expenses

The Sponsor is responsible for investing the assets of the Fund in accordance with the objectives and policies of the Fund. In addition, the Sponsor arranges for one or more third parties to provide administrative, custodial, accounting, transfer agency and other necessary services to the Fund. For these services, the Fund is contractually obligated to pay a monthly management fee to the Sponsor, based on average daily net assets, at a rate equal to 1.00% per annum. For the period April 1, 2012 through June 30, 2012, the Fund recorded $141,648 in management fees to the Sponsor. For the period April 1, 2011 through June 30, 2011, the Fund recorded $284,223 in management fees to the Sponsor. For the period January 1, 2012 through June 30, 2012, the Fund recorded $312,251 in management fees to the Sponsor. For the period January 1, 2011 through June 30, 2011, the Fund recorded $438,468 in management fees to the Sponsor. The Fund pays for all brokerage fees, taxes and other expenses, including licensing fees for the use of intellectual property, registration or other fees paid to the SEC, the Financial Industry Regulatory Authority (“FINRA”), formerly the National Association of Securities Dealers, or any other regulatory agency in connection with the offer and sale of subsequent Shares after its initial registration and all legal, accounting, printing and other expenses associated therewith. The Fund also pays the fees and expenses associated with the Fund’s tax accounting and reporting requirements. Certain aggregate expenses common to all Funds managed by the Sponsor are allocated to each Fund based on activity drivers deemed most appropriate by the Sponsor for such expenses. All asset-based fees and expenses are calculated on the prior day’s net assets.

Use of Estimates

Fair Value - Definition and Hierarchy

In determining fair value, the Fund uses various valuation approaches. In accordance with GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows:

Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 securities. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment.

Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Fund’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Fund uses prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many securities. This condition could cause a security to be reclassified to a lower level within the fair value hierarchy. For instance, when Corn Futures Contracts on the CBOT are not actively trading due to a “limit-up” or limit-down” condition, meaning that the change in the Corn Futures Contracts has exceeded the limits established, the Trust and the Fund will revert to alternative verifiable sources of valuation of its assets. When such a situation exists on a quarter close, the Sponsor will calculate the Net Asset Value (“NAV”) on a particular day using the Level 1 valuation, but will later recalculate the NAV for the impacted Fund based upon the valuation inputs from these alternative verifiable sources (Level 2 or Level 3) and will report such NAV in its applicable financial statements and reports.

On June 30, 2012 and December 31, 2011, in the opinion of the Trust and the Fund, the reported value of the Corn Futures Contracts traded on the CBOT fairly reflected the value of the Corn Futures Contracts held by the Fund, and no adjustments were necessary.

The Fund records its derivative activities at fair value. Gains and losses from derivative contracts are included in the statements of operations. Derivative contracts include futures contracts related to commodity prices. Futures, which are listed on a national securities exchange, such as the Chicago Board of Trade (“CBOT”) or the New York Mercantile Exchange (“NYMEX”), or reported on another national market, are generally categorized in Level 1 of the fair value hierarchy. OTC derivatives contracts (such as forward and swap contracts) which may be valued using models, depending on whether significant inputs are observable or unobservable, are categorized in Levels 2 or 3 of the fair value hierarchy.

Net Income (Loss) per Share

Net income (loss) per share is the difference between the NAV per unit at the beginning of each period and at the end of each period. The weighted average number of units outstanding was computed for purposes of disclosing net income (loss) per weighted average unit. The weighted average units are equal to the number of units outstanding at the end of the period, adjusted proportionately for units created or redeemed based on the amount of time the units were outstanding during such period.

New Accounting Pronouncements

Note 3 – Fair Value Measurements

The Fund’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy as described in the Fund’s significant accounting policies in Note 2. The following table presents information about the Fund’s assets and liabilities measured at fair value as of June 30, 2012 and December 31, 2011:

							Balance
June 30, 2012							as of
							June 30,
Assets:	Level 1		Level 2		Level 3		2012
Cash equivalents	$	53,821,290	$	-	$	-	$	53,821,290
Corn futures contracts		3,935,961		-		-		3,935,961
Total	$	57,757,251	$	-	$	-	$	57,757,251

							Balance
December 31, 2011							as of
							December 31,
Assets:	Level 1		Level 2		Level 3		2011
Cash equivalents	$	69,022,336	$	-	$	-	$	69,022,336
Corn futures contracts		1,928,408		-		-		1,928,408
Total	$	70,950,744	$	-	$	-	$	70,950,744

							Balance
							as of
							December 31,
Liabilities:	Level 1		Level 2		Level 3		2011
Corn futures contracts	$	2,711,523	$	-	$	-	$	2,711,523

There were no transfers into and out of each level of the fair value hierarchy for the commodity futures contracts valued using alternative verifiable sources due to a "limit-down" condition for the period January 1, 2012 through June 30, 2012.

Transfers into and out of each level of the fair value hierarchy for the corn futures contracts valued using alternative verifiable sources due to a "limit-down" or “limit-up” condition for the period January 1, 2011 through June 30, 2011 were as follows:

Transfers

into

out of

into

out of

into

out of

Level 1

Level 2

Level 3

Assets (at fair value)

Derivative contracts

Corn future contracts

9,140,288

Transfers

into

out of

into

out of

into

out of

Level 1

Level 2

Level 3

Liabilities (at fair value)

Derivative contracts

Corn future contracts

5,938,713

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 six months ended June 30, 2011, the Fund invested only in commodity futures contracts specifically related to the Fund. For the six months ended June 30, 2012, the Fund invested in commodity futures contracts. Cleared Corn Swaps have standardized terms similar to, and are priced by reference to, the corresponding Benchmark Component Futures Contract. Additionally, Other Corn Interests that do not have standardized terms and are not exchange-traded, referred to as “over-the-counter” Corn Interests, can generally be structured as the parties to the Corn Interest contract desire. Therefore, the Fund might enter into multiple Cleared Swaps and/or over-the-counter Interests intended to exactly replicate the performance of the Benchmark Component Futures Contracts for the Fund, or a single over-the-counter Interest designed to replicate the performance of the Benchmark as a whole. Assuming that there is no default by a counterparty to an over-the-counter Interest, the performance of the Interest will necessarily correlate exactly with the performance of the Benchmark or the applicable Benchmark Component Futures Contract.

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 statements 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. The following tables also identify the net gain and loss amounts included in the statements of operations as realized and unrealized gains and losses on trading of commodity futures contracts, categorized by primary underlying risk, for the period from January 1, 2012 to June 30, 2012 and 2011, and for the period from April 1, 2012 to June 30, 2012 and 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
Corn futures contracts	$	3,935,961	$	-	$	3,935,961

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

Primary Underlying Risk	Asset Derivatives		Liability Derivatives			Net Derivatives
Commodity Price
Corn futures contracts	$	1,928,408	$	(2,711,523	)	$	(783,115	)

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

For the period from 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
Corn futures contracts	$	(2,255,455	)	$	6,161,715

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
Corn futures contracts	$	(4,391,819	)	$	4,719,076

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

	Realized Gain on		Net Change in Unrealized Loss
Primary Underlying Risk	Derivative Instruments		on Derivative Instruments
Commodity Price
Corn futures contracts	$	1,989,590	$	(14,224,512	)

For the period from January 1, 2011 to June 30, 2011

	Realized Gain on		Net Change in Unrealized Loss
Primary Underlying Risk	Derivative Instruments		on Derivative Instruments
Commodity Price
Corn futures contracts	$	5,675,823	$	(10,262,443	)

Volume of Derivative Activities

The notional amounts and number of contracts, categorized by primary underlying risk, were as follows:

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

	Long Exposure
	Notional		Number
Primary Underlying Risk	Amounts		of Contracts
Commodity price
Corn futures contracts	$	61,966,713		2,035

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

	Long Exposure
	Notional		Number
Primary Underlying Risk	Amounts		of Contracts
Commodity price
Corn futures contracts	$	71,289,525		2,260

Note 5 - Financial Highlights

The following tables present per unit performance data and other supplemental financial data for the periods from January 1, 2012 through June 30, 2012 and January 1, 2011 through June 30, 2011. This information has been derived from information presented in the financial statements.

Per Share Operation Performance for January 1, 2012 through June 30, 2012
Net asset value at beginning of period	$	41.92
Income from investment operations:
Investment income		0.02
Net realized and unrealized gain on commodity futures contracts		1.15
Total expenses		(1.07	)
Net increase in net asset value		0.10
Net asset value end of period	$	42.02
Total Return		0.24	%
Ratios to Average Net Assets (Annualized)
Total expense		5.49	%
Net investment loss		(5.41	)%

Per Share Operation Performance for January 1, 2011 through June 30, 2011
Net asset value at beginning of period	$	39.06
Income from investment operations:
Investment income		0.02
Net realized and unrealized gain on commodity futures contracts		1.79
Total expenses		(0.48	)
Net increase in net asset value		1.33
Net asset value end of period	$	40.39
Total Return		3.41	%
Ratios to Average Net Assets (Annualized)
Total expense		2.22	%
Net investment loss		(2.13	)%

Total returns are calculated based on the change in value during the period. An individual shareholder’s total return and ratio may vary from the above total returns and ratios based on the timing of contributions to and withdrawals from the Fund.

The financial highlights per share data are calculated using the average of the daily shares outstanding for the reporting period, which is inclusive of the last day of the period under report. The asset-based per share data in the financial highlights are calculated using the prior day’s net assets consistent with the methodology used to calculate asset-based fees and expenses.

Note 6 - Organizational and Offering Costs

Expenses incurred in organizing of the Trust and the initial offering of the Shares of the Fund, including applicable SEC registration fees were borne directly by the Sponsor. The Fund will not be obligated to reimburse the Sponsor.

Note 7 – Subsequent Events

The Trust evaluates subsequent events through the date when financial statements are filed with the SEC.

For the period July 1, 2012 through August 9, 2012, there was nothing to report.

TEUCRIUM NATURAL GAS FUND

STATEMENTS OF ASSETS AND LIABILITIES

	June 30, 2012		December 31, 2011
	(Unaudited)
Assets

Equity in BNY Mellon trading accounts:
Cash and cash equivalents	$	3,200,986	$	1,277,159
Collateral, due from broker		619,648		700,573
Interest receivable		73		57
Other assets		2,325		12,808
Total assets		3,823,032		1,990,597

Liabilities

Natural gas futures contracts		272,363		602,440
Other liabilities		624		6,790
Total liabilities		272,987		609,230

Net assets	$	3,550,045	$	1,381,367

Shares outstanding		300,004		100,004

Net asset value per share	$	11.83	$	13.81

Market value per share	$	11.87	$	13.88

The accompanying notes are an integral part of these financial statements.

TEUCRIUM NATURAL GAS FUND

SCHEDULE OF INVESTMENTS

June 30, 2012

(Unaudited)

	Fair		Percentage of
Description: Assets	Value		Net Assets

Cash equivalents
Money market funds
Dreyfus Cash Management Plus	$	3,200,986		90.17	%

	Fair		Percentage of			Notional
Description: Liabilities	Value		Net Assets			Amount

Commodity futures contracts
United States natural gas futures contracts
NYMEX natural gas futures (31 contracts, settlement date September 26, 2012)	$	104,346		2.94	%	$	891,870
NYMEX natural gas futures (29 contracts, settlement date October 29, 2012)		134,521		3.80			896,390
NYMEX natural gas futures (25 contracts, settlement date February 26, 2013)		26,216		0.74			871,000
NYMEX natural gas futures (26 contracts, settlement date March 26, 2013)		7,280		0.21			896,740
Total commodity futures contracts	$	272,363		7.69	%	$	3,556,000

The accompanying notes are an integral part of these financial statements.

TEUCRIUM NATURAL GAS FUND

SCHEDULE OF INVESTMENTS

December 31, 2011

	Fair		Percentage of
Description: Assets	Value		Net Assets

Cash equivalents
Money market funds
Dreyfus Cash Management Plus	$	1,277,159		92.46	%

	Fair		Percentage of			Notional
Description: Liabilities	Value		Net Assets			Amount

Commodity futures contracts
United States natural gas futures contracts
NYMEX natural gas futures (11 contracts, settlement date February 27, 2012)	$	217,844		15.77	%	$	331,760
NYMEX natural gas futures (11 contracts, settlement date March 28, 2012)		161,614		11.70			338,690
NYMEX natural gas futures (11 contracts, settlement date September 26, 2012)		120,352		8.71			365,420
NYMEX natural gas futures (10 contracts, settlement date October 29, 2012)		102,630		7.43			347,900
	$	602,440		43.61	%	$	1,383,770

The accompanying notes are an integral part of these financial statements.

TEUCRIUM NATURAL GAS FUND

STATEMENTS OF OPERATIONS

(Unaudited)

	Three months			Three months			Six months			From commencement of
	ended			ended			ended			operations (February 1, 2011)
	June 30, 2012			June 30, 2011			June 30, 2012			through June 30, 2011
Income
Realized and unrealized (loss) gain on trading of commodity futures contracts:
Realized loss on commodity futures contracts	$	(63,608	)	$	(3,752	)	$	(567,888	)	$	(327,940	)
Net change in unrealized appreciation or depreciation on commodity futures contracts		197,507			(100,528	)		330,077			(57,008	)
Interest income		446			404			681			1,100
Total income (loss)		134,345			(103,876	)		(237,130	)		(383,848	)

Expenses
Management fees		-			-			-			3,628
Professional fees		(383	)		35,703			2,073			58,852
Distribution and marketing fees		4,671			29,355			6,588			48,387
Custodian fees and expenses		1,463			32,210			2,354			53,094
Business permits and licenses fees		(131	)		-			(82	)		-
General and administrative expenses		3,215			-			3,219			-
Brokerage commissions		210			9			492			458
Other expenses		(103	)		14,346			94			23,646
Total expenses		8,942			111,623			14,738			188,065

Net income (loss)	$	125,403		$	(215,499	)	$	(251,868	)	$	(571,913	)

Net income (loss) per share	$	0.81		$	(2.15	)	$	(1.98	)	$	(3.11	)
Net income (loss) per weighted average share	$	0.58		$	(2.15	)	$	(1.49	)	$	(4.83	)
Weighted average shares outstanding		217,037			100,004			169,235			118,337

The accompanying notes are an integral part of these financial statements.

TEUCRIUM NATURAL GAS FUND

STATEMENTS OF CHANGES IN NET ASSETS

(Unaudited)

				From commencement of
	Six months ended			operations (February 1, 2011)
	June 30, 2012			through June 30, 2011
Operations
Net loss	$	(251,868	)	$	(571,913	)
Capital transactions
Issuance of Shares		2,420,546			5,000,000
Redemption of Shares		-			(2,239,408	)
Total capital transactions		2,420,546			2,760,592
Net change in net assets		2,168,678			2,188,679

Net assets, beginning of period		1,381,367			100

Net assets, end of period	$	3,550,045		$	2,188,779
Net asset value per share at beginning of period	$	13.81		$	25.00

At end of period	$	11.83		$	21.89

The accompanying notes are an integral part of these financial statements.

TEUCRIUM NATURAL GAS FUND

STATEMENTS OF CASH FLOWS

(Unaudited)

				From commencement of
	Six months ended			operations (February 1, 2011)
	June 30, 2012			through June 30, 2011
Cash flows from operating activities:
Net loss	$	(251,868	)	$	(571,913	)
Adjustments to reconcile net loss to net cash used in operating activities:
Net change in unrealized appreciation or depreciation on commodity futures contracts		(330,077	)		57,008
Changes in operating assets and liabilities:
Collateral, due from broker		80,925			(224,058	)
Interest receivable		(16	)		(111	)
Other assets		10,483			(115,602	)
Other liabilities		(6,166	)		66,461
Net cash used in operating activities		(496,719	)		(788,215	)

Cash flows from financing activities:
Proceeds from sale of Shares		2,420,546			5,000,000
Redemption of Shares		-			(2,239,408	)
Net cash provided by financing activities		2,420,546			2,760,592

Net change in cash and cash equivalents		1,923,827			1,972,377
Cash and cash equivalents, beginning of period		1,277,159			100
Cash and cash equivalents, end of period	$	3,200,986		$	1,972,477

The accompanying notes are an integral part of these financial statements.

NOTES TO FINANCIAL STATEMENTS

June 30, 2012

(Unaudited)

Note 1 – Organization and Operation

Teucrium Natural Gas Fund (referred to herein as “NAGS,” or the “Fund”) is a commodity pool that is a series of Teucrium Commodity Trust (“Trust”), a Delaware statutory trust formed on September 11, 2009. The Fund issues common units, called the “Shares,” representing fractional undivided beneficial interests in the Fund. The Fund continuously offers Creation Baskets consisting of 50,000 Shares at their Net Asset Value (“NAV”) to “Authorized Purchasers” through Foreside Fund Services, LLC, which is the distributor for the Fund (the “Distributor”). Authorized Purchasers sell such Shares, which are listed on the New York Stock Exchange (“NYSE”) Arca under the symbol “NAGS,” to the public at per-Share offering prices that reflect, among other factors, the trading price of the Shares on the NYSE Arca, the NAV of the Fund at the time the Authorized Purchaser purchased the Creation Baskets and the NAV at the time of the offer of the Shares to the public, the supply of and demand for Shares at the time of sale, and the liquidity of the markets for natural gas interests. The Fund’s Shares trade in the secondary market on the NYSE Arca at prices that are lower or higher than their NAV per Share.

The investment objective of the Fund is to have the daily changes in percentage terms of the Shares’ NAV reflect the daily changes in percentage terms of a weighted average of the following: the nearest to spot month March, April, October and November Henry Hub Natural Gas Futures Contracts traded on the New York Mercantile Exchange (“NYMEX”), weighted 25% equally in each contract month. (This weighted average of the four referenced Natural Gas Futures Contracts is referred to herein as the “NAGS Benchmark,” and the four Natural Gas Futures Contracts that at any given time make up the Benchmark are referred to herein as the “NAGS Benchmark Component Futures Contracts.”)

The Fund commenced investment operations on February 1, 2011 and has a fiscal year ending December 31. The Fund’s sponsor is Teucrium Trading, LLC (the “Sponsor”). The Sponsor is responsible for the management of the Fund. The Sponsor is a member of the National Futures Association (the “NFA”) and became a commodity pool operator registered with the Commodity Futures Trading Commission (the “CFTC”) effective November 10, 2009.

On October 22, 2010, the Fund’s initial registration of 40,000,000 shares on Form S-1 was declared effective by the U.S. Securities and Exchange Commission (“SEC”). On February 1, 2011, the Fund listed its shares on the NYSE Arca under the ticker symbol “NAGS”. On the day prior to that, the Fund issued 200,000 shares in exchange for $5,000,000 at NAGS’ initial NAV of $25 per share. The Fund also commenced investment operations on February 1, 2011 by purchasing commodity futures contracts traded on the NYMEX. On December 31, 2010, the Fund had two shares outstanding which were owned by the Sponsor.

The accompanying unaudited financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X promulgated by the SEC and, therefore, do not include all information and footnote disclosures required under accounting principles generally accepted in the United States of America (“GAAP”). The financial information included herein is unaudited; however, such financial information reflects all adjustments which are, in the opinion of management, necessary for the fair presentation of the Fund’s financial statements for the interim period. It is suggested that these interim financial statements be read in conjunction with the financial statements and related notes included in the Trust’s Annual Report on Form 10-K and Form 10-K/A, as well as the most recent amendment to Form S-1, dated May 1, 2012, as applicable. The operating results from January 1, 2012 through June 30, 2012 are not necessarily indicative of the results to be expected for the full year ending December 31, 2012.

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

Reclassifications

Certain amounts in prior periods have been reclassified to conform to current period presentation.

Revenue Recognition

financial statements. Changes in the appreciation or depreciation between periods are reflected in the statements of operations. Interest on cash equivalents and deposits with the Futures Commission Merchant are recognized on the accrual basis. The Fund earns interest on its assets denominated in U.S. dollars on deposit with the Futures Commission Merchant. In addition, the Fund earns interest on funds held at the custodian at prevailing market rates for such investments.

Brokerage Commissions

Brokerage commissions on all open commodity futures contracts are accrued on a full-turn basis.

Income Taxes

In accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification Topic (“ASC”) 740-10-25-6, “Accounting for Uncertainty in Income Taxes,” the Fund is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The Fund files an income tax return in the U.S. federal jurisdiction, and may file income tax returns in various U.S. states and foreign jurisdictions. The Fund is subject to income tax examinations by major taxing authorities for all tax years since inception. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in the Fund recording a tax liability that reduces net assets. Based on its analysis, the Fund has determined that it has not incurred any liability for unrecognized tax benefits as of June 30, 2012 and December 31, 2011. However, the Fund’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, ongoing analysis of and changes to tax laws, regulations, and interpretations thereof.

Creations and Redemptions

Authorized Purchasers may purchase Creation Baskets consisting of 50,000 shares from the Fund. The amount of the proceeds required to purchase a Creation Basket will be equal to the NAV of the shares in the Creation Basket determined as of 4:00 p.m. New York time on the day the order to create the basket is properly received.

Authorized Purchasers may redeem shares from the Fund only in blocks of 50,000 shares called “Redemption Baskets.” The amount of the redemption proceeds for a Redemption Basket will be equal to the NAV of the shares in the Redemption Basket determined as of 4:00 p.m. New York time on the day the order to redeem the basket is properly received.

As outlined in most recent Amendment to the Form S-1 dated May 1, 2012, 100,000 represents two Redemption Baskets for the Fund and a minimum level of shares.

Allocation of Shareholder Income and Losses

Profit or loss is allocated among the shareholders of the Fund in proportion to the number of shares each shareholder holds as of the close of each month.

Cash Equivalents

bank may, at times, exceed federally insured limits. The Fund had a balance of $3,200,986 and $1,277,159 in money market funds on June 30, 2012 and December 31, 2011, respectively; these balances are included in cash and cash equivalents on the statements of assets and liabilities.

Collateral, Due from/to Broker

Margin is the minimum amount of funds that must be deposited by a commodity interest trader with the trader’s broker to initiate and maintain an open position in futures contracts. A margin deposit acts to assure the trader’s performance of the futures contracts purchased or sold. Futures contracts are customarily bought and sold on initial margin that represents a very small percentage of the aggregate purchase or sales price of the contract. Because of such low margin requirements, price fluctuations occurring in the futures markets may create profits and losses that, in relation to the amount invested, are greater than are customary in other forms of investment or speculation. As discussed below, adverse price changes in the futures contract may result in margin requirements that greatly exceed the initial margin. In addition, the amount of margin required in connection with a particular futures contract is set from time to time by the exchange on which the contract is traded and may be modified from time to time by the exchange during the term of the contract. Brokerage firms, such as the Fund’s clearing brokers, carrying accounts for traders in commodity interest contracts generally require higher amounts of margin as a matter of policy to further protect themselves. Over-the-counter trading generally involves the extension of credit between counterparties, so the counterparties may agree to require the posting of collateral by one or both parties to address credit exposure.

Ongoing or “maintenance” margin requirements are computed each day by a trader’s clearing broker. When the market value of a particular open futures contract changes to a point where the margin on deposit does not satisfy maintenance margin requirements, a margin call is made by the broker. If the margin call is not met within a reasonable time, the broker may close out the trader’s position. With respect to the Fund’s trading, the Fund (and not its shareholders personally) is subject to margin calls.

Finally, many major U.S. exchanges have passed certain cross margining arrangements involving procedures pursuant to which the futures and options positions held in an account would, in the case of some accounts, be aggregated and margin requirements would be assessed on a portfolio basis, measuring the total risk of the combined positions.

Calculation of Net Asset Value

The Fund’s NAV is calculated by:

•

Taking the current market value of its total assets,

•

Subtracting any liabilities, and

In determining the value of Natural Gas Futures Contracts, the administrator uses the NYMEX closing price (typically 2:30 p.m. New York time). The administrator determines the value of all other Fund investments as of the earlier of the close of the NYSE or 4:00 p.m. New York time. The value of over-the-counter natural gas interests is determined based on the value of the commodity or futures contract underlying such natural gas interest, except that a fair value may be determined if the Sponsor believes that the Fund is subject to significant credit risk relating to the counterparty to such natural gas interest. For purposes of financial statements and reports, the Sponsor will recalculate the NAV where necessary to reflect the “fair value” of a Futures Contract when the Futures Contract closes at its price fluctuation limit for the day. Treasury securities held by the Fund are valued by the administrator using values received from recognized third-party vendors and dealer quotes. NAV includes any unrealized profit or loss on open natural gas interests and any other income or expense accruing to the Fund but unpaid or not received by the Fund.

Sponsor Fee and Allocation of Expenses

the Sponsor. The Sponsor has waived, for a period to be instituted again at the Sponsor’s discretion, the management fee for this Fund. This action by the Sponsor resulted in an approximate $6,000 reduction in expenses to the Fund for the three months ended June 30, 2012 and $10,000 for the six months ended from January 1, 2012 through June 30, 2012. For the period from the commencement of operations (February 1, 2011) through June 30, 2011, the Fund recorded $3,628 in management fees to the Sponsor.

The Fund generally pays for all brokerage fees, taxes and other expenses, including licensing fees for the use of intellectual property, registration or other fees paid to the SEC, the Financial Industry Regulatory Authority (“FINRA”), formerly the National Association of Securities Dealers, or any other regulatory agency in connection with the offer and sale of subsequent Shares after its initial registration and all legal, accounting, printing and other expenses associated therewith. The Fund also pays its portion of the fees and expenses associated with the Trust’s tax accounting and reporting requirements. Certain aggregate expenses common to all Funds managed by the Sponsor are allocated to each Fund based on activity drivers deemed most appropriate by the Sponsor for such expenses. All asset-based fees and expenses are calculated on the prior day’s net assets. On July 29, 2011, the Sponsor filed a Form 8-K with the SEC which stated that effective August 1, 2011, the Sponsor has agreed to voluntarily cap the management fee and expenses of NAGS at 1.5% per annum of the daily net assets of the Fund. The cap may be terminated by the Sponsor at any time with 90 days’ notice. This action resulted in an approximate $8,000 reduction in expenses for the Fund for the three month and six month periods ending June 30, 2012. Additional expenses of the Fund may be paid by the Sponsor in future periods.

Use of Estimates

Fair Value - Definition and Hierarchy

In determining fair value, the Fund uses various valuation approaches. In accordance with U.S. GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows:

Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

On June 30, 2012 and December 31, 2011 in the opinion of the Trust and the Fund, the reported value of the Natural Gas Futures Contracts traded on the NYMEX fairly reflected the value of the Natural Gas Futures Contracts held by the Fund, and no adjustments were necessary.

such a situation exists on a quarter close, the Sponsor will calculate the NAV on a particular day using the Level 1 valuation, but will later recalculate the NAV for the impacted Fund based upon the valuation inputs from these alternative verifiable sources (Level 2 or Level 3) and will report such NAV in its applicable financial statements and reports.

Net Income (Loss) per Share

New Accounting Pronouncements

Note 3 – Fair Value Measurements

June 30, 2012
							Balance
							as of
							June 30,
Assets:	Level 1		Level 2		Level 3		2012
Cash equivalents	$	3,200,986	$	-	$	-	$	3,200,986

							Balance
							as of
							June 30,
Liabilities:	Level 1		Level 2		Level 3		2012
NYMEX natural gas futures contracts	$	272,363	$	-	$	-	$	272,363

December 31, 2011
							Balance
							as of
							December 31,
Assets:	Level 1		Level 2		Level 3		2011
Cash equivalents	$	1,277,159	$	-	$	-	$	1,277,159

							Balance
							as of
							December 31,
Liabilities:	Level 1		Level 2		Level 3		2011
NYMEX natural gas futures contracts	$	602,440	$	-	$	-	$	602,440

During the period ended June 30, 2012 and from the commencement of operations (February 1, 2011) through June 30, 2011, the Fund did not have any significant transfers between any of the levels of the fair value hierarchy.

Note 4 – Derivative Instruments and Hedging Activities

Futures Contracts

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 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

Note 5 – Financial Highlights

The following table presents per unit performance data and other supplemental financial data for the period January 1, 2012 through June 30, 2012 and from commencement of operations (February 1, 2011) through June 30, 2011. This information has been derived from information presented in the financial statements.

Per Share Operation Performance for January 1, 2012 through June 30, 2012
Net asset value at beginning of period	$	13.81
Income (loss) from investment operations:
Investment income		0.01
Net realized and unrealized loss on commodity futures contracts		(1.90	)
Total expenses		(0.09	)
Net decrease in net asset value		(1.98	)
Net asset value at end of period	$	11.83
Total Return		(14.34	)%
Ratios to Average Net Assets (Annualized)
Total expense		1.52	%
Net investment loss		(1.45	)%

Per Share Operation Performance from commencement of operations (February 1, 2011) through June 30, 2011
Net asset value at beginning of period	$	25.00
Income (loss) from investment operations:
Investment income		0.01
Net realized and unrealized loss on commodity futures contracts		(1.53	)
Total expenses		(1.59	)
Net decrease in net asset value		(3.11	)
Net asset value at end of period	$	21.89
Total Return		(12.44	)%
Ratios to Average Net Assets (Annualized)
Total expense		16.62	%
Net investment loss		(16.53	)%

On July 29, 2011, the Sponsor filed a Form 8-K with the SEC which stated that effective August 1, 2011, the Sponsor has agreed to voluntarily cap the management fee and expenses of NAGS at 1.5% per annum of the daily net assets of the Fund. The cap may be terminated by the Sponsor at any time with 90 days’ notice. This action by the Sponsor resulted in an approximate $8,000 reduction in expenses to the Fund for the period January 1, 2012 through June 30, 2012. The Sponsor has waived, for a period to be instituted again at the Sponsor’s discretion, the management fee for this Fund. This action resulted in an approximate $10,000 reduction in expenses for the Fund for the six month period ending June 30, 2012. Additional expenses of the Fund may be paid by the Sponsor in future periods.

Note 6 – Organizational and Offering Costs

Note 7 – Subsequent Events

The Trust evaluates subsequent events through the date when financial statements are filed with the SEC.

For the period July 1, 2012 through August 9, 2012, there was nothing to report.

TEUCRIUM WTI CRUDE OIL FUND

STATEMENTS OF ASSETS AND LIABILITIES

	June 30, 2012		December 31, 2011
	(Unaudited)
Assets

Equity in BNY Mellon trading accounts:
Cash and cash equivalents	$	1,657,116	$	4,139,910
WTI crude oil futures contracts		-		116,142
Collateral, due from broker		438,698		157,791
Interest receivable		44		215
Other assets		34,411		48,532
Total assets		2,130,269		4,462,590

Liabilities

WTI crude oil futures contracts		170,533		168
Management fee payable to Sponsor		1,535		4,658
Other liabilities		29,795		12,751
Total liabilities		201,863		17,577

Net assets	$	1,928,406	$	4,445,013

Shares outstanding		50,002		100,002

Net asset value per share	$	38.57	$	44.45

Market value per share	$	38.34	$	44.58

The accompanying notes are an integral part of these financial statements.

TEUCRIUM WTI CRUDE OIL FUND

SCHEDULE OF INVESTMENTS

June 30, 2012

(Unaudited)

	Fair		Percentage of
Description: Assets	Value		Net Assets

Cash equivalents
Money market funds
Dreyfus Cash Management Plus	$	1,657,116		85.93	%

	Fair		Percentage of			Notional
Description: Liabilities	Value		Net Assets			Amount

Commodity futures contracts
United States WTI crude oil futures contracts
WTI crude oil futures (8 contracts, settlement date November 16, 2012)	$	74,149		3.85	%	$	693,360
WTI crude oil futures (6 contracts, settlement date May 21, 2013)		91,870		4.76			531,780
WTI crude oil futures (8 contracts, settlement date November 20, 2013)		4,514		0.23			707,600
Total commodity futures contracts	$	170,533		8.84	%	$	1,932,740

The accompanying notes are an integral part of these financial statements.

TEUCRIUM WTI CRUDE OIL FUND

SCHEDULE OF INVESTMENTS

December 31, 2011

	Fair		Percentage of			Notional
Description: Assets	Value		Net Assets			Amount

Cash equivalents
Money market funds
Dreyfus Cash Management Plus	$	4,139,910		93.14	%

Commodity futures contracts
United States WTI crude oil futures contracts
WTI crude oil futures (14 contracts, settlement date November 16, 2012)	$	15,839		0.35	%	$	1,373,540
WTI crude oil futures (16 contracts, settlement date November 20, 2013)		100,303		2.26			1,516,160
Total commodity futures contracts	$	116,142		2.61	%	$	2,889,700

Fair

Percentage of

Notional

Description: Liabilities

Value

Net Assets

Amount

Commodity futures contracts

United States WTI crude oil futures contracts

WTI crude oil futures (16 contracts, settlement date May 22, 2012)

168

0.00

1,591,680

The accompanying notes are an integral part of these financial statements.

TEUCRIUM WTI CRUDE OIL FUND

STATEMENTS OF OPERATIONS

(Unaudited)

	Three months			Three months			Six months			From commencement of
	ended			ended			ended			operations (February 23, 2011)
	June 30, 2012			June 30, 2011			June 30, 2012			through June 30, 2011
Income
Realized and unrealized (loss) gain on trading of commodity futures contracts:
Realized loss on commodity futures contracts	$	37,737		$	178,369		$	43,347		$	183,869
Net change in unrealized appreciation or depreciation on commodity futures contracts		(511,027	)		(547,199	)		(286,507	)		(165,339	)
Interest income		690			912			1,345			1,418
Total (loss) income		(472,600	)		(367,918	)		(241,815	)		19,948

Expenses
Management fees		6,810			12,799			16,672			18,058
Professional fees		13,309			35,704			15,493			50,221
Distribution and marketing fees		4,436			29,355			29,188			41,290
Custodian fees and expenses		32,211			32,210			64,421			45,307
Brokerage commissions		204			104			299			311
Other expenses		250			14,344			250			20,177
Total expenses		57,220			124,516			126,323			175,364

Net loss	$	(529,820	)	$	(492,434	)	$	(368,138	)	$	(155,416	)

Net loss per share	$	(7.86	)	$	(4.92	)	$	(5.88	)	$	(1.55	)
Net loss per weighted average share	$	(8.26	)	$	(4.92	)	$	(4.93	)	$	(1.55	)
Weighted average shares outstanding		64,132			100,002			74,727			100,002

The accompanying notes are an integral part of these financial statements.

TEUCRIUM WTI CRUDE OIL FUND

STATEMENTS OF CHANGES IN NET ASSETS

(Unaudited)

				From commencement of
	Six months ended			operations (February 23, 2011)
	June 30, 2012			through June 30, 2011
Operations
Net loss	$	(368,138	)	$	(155,416	)
Capital transactions
Issuance of Shares		-			5,000,000
Redemption of Shares		(2,148,469	)		-
Total capital transactions		(2,148,469	)		5,000,000
Net change in net assets		(2,516,607	)		4,844,584

Net assets, beginning of period		4,445,013			100

Net assets, end of period	$	1,928,406		$	4,844,684
Net asset value per share at beginning of period	$	44.45		$	50.00

At end of period	$	38.57		$	48.45

The accompanying notes are an integral part of these financial statements.

TEUCRIUM WTI CRUDE OIL FUND

STATEMENTS OF CASH FLOWS

(Unaudited)

				From commencement of
	Six months ended			operations (February 23, 2011)
	June 30, 2012			through June 30, 2011
Cash flows from operating activities:
Net loss	$	(368,138	)	$	(155,416	)
Adjustments to reconcile net loss to net cash used in operating activities:
Net change in unrealized appreciation or depreciation on commodity futures contracts		286,507			165,339
Changes in operating assets and liabilities:
Collateral, due from broker		(280,907	)		(562,774	)
Interest receivable		171			(234	)
Other assets		14,121			(92,261	)
Management fee payable to Sponsor		(3,123	)		4,021
Other liabilities		17,044			60,698
Net cash used in operating activities		(334,325	)		(580,627	)

Cash flows from financing activities:
Proceeds from sale of Shares		-			5,000,000
Redemption of Shares		(2,148,469	)		-
Net cash (used in) provided by financing activities		(2,148,469	)		5,000,000

Net change in cash and cash equivalents		(2,482,794	)		4,419,373
Cash and cash equivalents, beginning of period		4,139,910			100
Cash and cash equivalents, end of period	$	1,657,116		$	4,419,473

The accompanying notes are an integral part of these financial statements.

NOTES TO FINANCIAL STATEMENTS

June 30, 2012

(Unaudited)

Note 1 – Organization and Operation

Teucrium WTI Crude Oil Fund (referred to herein as “CRUD” or the “Fund”) is a commodity pool that is a series of Teucrium Commodity Trust (“Trust”), a Delaware statutory trust formed on September 11, 2009. The Fund issues common units, called the “Shares,” representing fractional undivided beneficial interests in the Fund. The Fund continuously offers Creation Baskets consisting of 25,000 Shares at their Net Asset Value (“NAV”) to “Authorized Purchasers” through Foreside Fund Services, LLC, which is the distributor for the Fund (the “Distributor”). Authorized Purchasers sell such Shares, which are listed on the New York Stock Exchange (“NYSE”) Arca under the symbol “CRUD,” to the public at per-Share offering prices that reflect, among other factors, the trading price of the Shares on the NYSE Arca, the NAV of the Fund at the time the Authorized Purchaser purchased the Creation Baskets and the NAV at the time of the offer of the Shares to the public, the supply of and demand for Shares at the time of sale, and the liquidity of the markets for crude oil interests. The Fund’s Shares trade in the secondary market on the NYSE Arca at prices that are lower or higher than their NAV per Share.

The investment objective of the Fund is to have the daily changes in percentage terms of the Shares’ Net Asset Value (“NAV”) reflect the daily changes in percentage terms of a weighted average of the closing settlement prices for futures contracts for WTI crude oil, also known as Texas Light Sweet Crude Oil (“Oil Futures Contracts”) traded on the NYMEX, specifically (1) the nearest to spot June or December Oil Futures Contract, weighted 35%; (2) the June or December Oil Futures Contract following the aforementioned (1), weighted 30%; and (3) the next December Oil Future Contract that immediately follows the aforementioned (2), weighted 35%. (This weighted average of the three referenced WTI Crude Oil Futures Contracts is referred to herein as the “CRUD Benchmark,” and the three WTI Crude Oil Futures Contracts that at any given time make up the Benchmark are referred to herein as the “CRUD Benchmark Component Futures Contracts.”)

The Fund commenced investment operations on February 23, 2011 and has a fiscal year ending December 31. The Fund’s sponsor is Teucrium Trading, LLC (the “Sponsor”). The Sponsor is responsible for the management of the Fund. The Sponsor is a member of the National Futures Association (the “NFA”) and became a commodity pool operator registered with the Commodity Futures Trading Commission (the “CFTC”) effective November 10, 2009.

On October 22, 2010, the Fund’s initial registration of 15,000,000 shares on Form S-1 was declared effective by the SEC. On February 23, 2011, the Fund listed its shares on the NYSE Arca under the ticker symbol “CRUD.” On the day prior to that, the Fund issued 100,000 shares in exchange for $5,000,000 at the Fund’s initial NAV of $50 per share. The Fund also commenced investment operations on February 23, 2011 by purchasing commodity futures contracts traded on the NYMEX. On December 31, 2010, the Fund had two shares outstanding, which were owned by the Sponsor.

The accompanying unaudited financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X promulgated by the U.S. Securities and Exchange Commission (the “SEC”) and, therefore, do not include all information and footnote disclosures required under accounting principles generally accepted in the United States of America (“GAAP”). The financial information included herein is unaudited; however, such financial information reflects all adjustments which are, in the opinion of management, necessary for the fair presentation of the Fund’s financial statements for the interim period. It is suggested that these interim financial statements be read in conjunction with the financial statements and related notes included in the Trust’s Annual Report on Form 10-K and Form 10-K/A, as well as the most recent amendment to Form S-1, dated May 1, 2012, as applicable. The operating results from January 1, 2012 through June 30, 2012 are not necessarily indicative of the results to be expected for the full year ending December 31, 2012.

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

Reclassifications

Certain amounts in prior periods have been reclassified to conform to current period presentation.

Revenue Recognition

difference between the original contract amount and the fair market value as of the last business day of the year or as of the last date of the financial statements. Changes in the appreciation or depreciation between periods are reflected in the statements of operations. Interest on cash equivalents and deposits with the Futures Commission Merchant are recognized on the accrual basis. The Fund earns interest on its assets denominated in U.S. dollars on deposit with the Futures Commission Merchant. In addition, the Fund earns interest on funds held at the custodian at prevailing market rates for such investments.

Brokerage Commissions

Brokerage commissions on all open commodity futures contracts are accrued on a full-turn basis.

Income Taxes

In accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification Topic (“ASC”) 740-10-25-6, “Accounting for Uncertainty in Income Taxes,” the Fund is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The Fund files an income tax return in the U.S. federal jurisdiction, and may file income tax returns in various U.S. states and foreign jurisdictions. The Fund is subject to income tax examinations by major taxing authorities for all tax years since inception. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in the Fund recording a tax liability that reduces net assets. Based on its analysis, the Fund has determined that it has not incurred any liability for unrecognized tax benefits as of June 30, 2012 and December 31, 2011. However, the Fund’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, ongoing analysis of and changes to tax laws, regulations, and interpretations thereof.

The Fund may be subject to potential examination by U.S. federal, U.S. state or foreign jurisdictional authorities in the area of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions, and compliance with U.S. federal, U.S. state and foreign tax laws. The Fund’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.

Creations and Redemptions

Authorized Purchasers may purchase Creation Baskets consisting of 25,000 shares from the Fund. The amount of the proceeds required to purchase a Creation Basket will be equal to the NAV of the shares in the Creation Basket determined as of 4:00 p.m. New York time on the day the order to create the basket is properly received.

As outlined in most recent Amendment to the Form S-1 dated May 1, 2012, 50,000 represents two Redemption Baskets for the Fund and a minimum level of shares. As of May 18, 2012, the Fund had a minimum number of baskets and shares outstanding and no redemptions can be made until additional shares are created.

Allocation of Shareholder Income and Losses

Profit or loss is allocated among the shareholders of the Fund in proportion to the number of shares each shareholder holds as of the close of each month.

Cash Equivalents

Cash equivalents are highly-liquid investments with original maturity dates of three months or less at inception. The Fund reported its cash equivalents in the statements of assets and liabilities at market value, or at carrying amounts that approximate fair value, because of their highly-liquid nature and short-term maturities. The Fund has a substantial portion of its assets on deposit with banks. Assets deposited with the bank may, at times, exceed federally insured limits. The Fund had a balance of $1,657,116 and $4,139,910 in money market funds at June 30, 2012 and December 31, 2011, respectively; these balances are included in cash and cash equivalents on the statements of assets and liabilities.

Collateral, Due from/to Broker

Margin is the minimum amount of funds that must be deposited by a commodity interest trader with the trader’s broker to initiate and maintain an open position in futures contracts. A margin deposit acts to assure the trader’s performance of the futures contracts purchased or sold. Futures contracts are customarily bought and sold on initial margin that represents a very small percentage of the aggregate purchase or sales price of the contract. Because of such low margin requirements, price fluctuations occurring in the futures markets may create profits and losses that, in relation to the amount invested, are greater than are customary in other forms of investment or speculation. As discussed below, adverse price changes in the futures contract may result in margin requirements that greatly exceed the initial margin. In addition, the amount of margin required in connection with a particular futures contract is set from time to time by the exchange on which the contract is traded and may be modified from time to time by the exchange during the term of the contract. Brokerage firms, such as the Fund’s clearing brokers, carrying accounts for traders in commodity interest contracts generally require higher amounts of margin as a matter of policy to further protect themselves. Over-the-counter trading generally involves the extension of credit between counterparties, so the counterparties may agree to require the posting of collateral by one or both parties to address credit exposure.

Ongoing or “maintenance” margin requirements are computed each day by a trader’s clearing broker. When the market value of a particular open futures contract changes to a point where the margin on deposit does not satisfy maintenance margin requirements, a margin call is made by the broker. If the margin call is not met within a reasonable time, the broker may close out the trader’s position. With respect to the Fund’s trading, the Fund (and not its shareholders personally) is subject to margin calls.

Finally, many major U.S. exchanges have passed certain cross margining arrangements involving procedures pursuant to which the futures and options positions held in an account would, in the case of some accounts, be aggregated and margin requirements would be assessed on a portfolio basis, measuring the total risk of the combined positions.

Calculation of Net Asset Value

The Fund’s NAV is calculated by:

•

Taking the current market value of its total assets,

•

Subtracting any liabilities, and

In determining the value of WTI Crude Oil Futures Contracts, the administrator uses the NYMEX closing price (typically 2:30 p.m. New York time). The administrator determines the value of all other Fund investments as of the earlier of the close of the NYSE or 4:00 p.m. New York time. The value of over-the-counter crude oil interests is determined based on the value of the commodity or futures contract underlying such crude oil interest, except that a fair value may be determined if the Sponsor believes that the Fund is subject to significant credit risk relating to the counterparty to such crude oil interest. For purposes of financial statements and reports, the Sponsor will recalculate the NAV where necessary to reflect the “fair value” of a Futures Contract when the Futures Contract closes at its price fluctuation limit for the day. Treasury securities held by the Fund are valued by the administrator using values received from recognized third-party vendors and dealer quotes. NAV includes any unrealized profit or loss on open crude oil interests and any other income or expense accruing to the Fund but unpaid or not received by the Fund.

Sponsor Fee and Allocation of Expenses

The Fund pays for all brokerage fees, taxes and other expenses, including licensing fees for the use of intellectual property, registration or other fees paid to the SEC, the Financial Industry Regulatory Authority (“FINRA”), formerly the National Association of Securities Dealers, or any other regulatory agency in connection with the offer and sale of subsequent Shares after its initial registration and all legal, accounting, printing and other expenses associated therewith. The Fund also pays its portion of the fees and expenses associated with the Trust’s tax accounting and reporting requirements. Certain aggregate expenses common to all Funds managed by the Sponsor are allocated to each Fund based on activity drivers deemed most appropriate by the Sponsor for such expenses. All asset-based fees and expenses are calculated on the prior day’s net assets. The Sponsor may, at its discretion, pay certain expenses on behalf of the Fund. For the period April 1, 2012 to June 30, 2012, the expenses paid by the Fund were reduced by approximately $14,500. No expenses were paid by the Sponsor for the prior three month period of 2012 and no expenses were paid by the Sponsor for the period from the commencement of operations (February 23, 2011) through June 30, 2011.

Use of Estimates

Fair Value - Definition and Hierarchy

Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

recalculate the NAV for the impacted Fund based upon the valuation inputs from these alternative verifiable sources (Level 2 or Level 3) and will report such NAV in its applicable financial statements and reports.

On June 30, 2012 and December 31, 2011, in the opinion of the Trust and the Fund, the reported value of the WTI Crude Oil Futures Contracts traded on the NYMEX fairly reflected the value of the WTI Crude Oil Futures Contracts held by the Fund, and no adjustments were necessary.

Net Income (Loss) per Share

New Accounting Pronouncements

Note 3 – Fair Value Measurements

June 30, 2012

							Balance
							as of
							June 30,
Assets:	Level 1		Level 2		Level 3		2012
Cash equivalents	$	1,657,116	$	-	$	-	$	1,657,116

Balance

as of

June 30,

Liabilities:

Level 1

Level 2

Level 3

2012

WTI crude oil futures contracts

170,533

December 31, 2011

							Balance
							as of
							December 31,
Assets:	Level 1		Level 2		Level 3		2011
Cash equivalents	$	4,139,910	$	-	$	-	$	4,139,910
WTI crude oil futures contracts		116,142		-		-		116,142
Total	$	4,256,052	$	-	$	-	$	4,256,052

							Balance
							as of
							December 31,
Liabilities:	Level 1		Level 2		Level 3		2011
WTI crude oil futures contracts	$	168	$	-	$	-	$	168

During the period ended June 30, 2012 and from the commencement of operations (February 23, 2011) through June 30, 2011, the Fund did not have any significant transfers between any of the levels of the fair value hierarchy.

Note 4 – Derivative Instruments and Hedging Activities

Futures Contracts

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 following tables identify the fair value amounts of derivative instruments included in the statements 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. The following tables also identify the net gain and loss amounts included in the statements of operations as realized and unrealized gains and losses on trading of commodity futures contracts, categorized by primary underlying risk, for the period April 1, 2012 to June 30, 2012, for the period January 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 23, 2011) through 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
WTI crude oil futures contracts	$	-	$	(170,533	)	$	(170,533	)

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

Primary Underlying Risk	Asset Derivatives		Liability Derivatives			Net Derivatives
Commodity price
WTI crude oil futures contracts	$	116,142	$	(168	)	$	115,974

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 Gain on		Net Change in Unrealized Loss
Primary Underlying Risk	Derivative Instruments		on Derivative Instruments
Commodity price
WTI crude oil futures contracts	$	37,737	$	(511,027)

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

	Realized Gain on		Net Change in Unrealized Loss
Primary Underlying Risk	Derivative Instruments		on Derivative Instruments
Commodity price
WTI crude oil futures contracts	$	43,347	$	(286,507)

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

	Realized Gain on		Net Change in Unrealized Loss
Primary Underlying Risk	Derivative Instruments		on Derivative Instruments
Commodity price
WTI crude oil futures contracts	$	178,369	$	(547,199)

For the period from commencement of operations (February 23, 2011) to June 30, 2011

	Realized Gain on		Net Change in Unrealized Loss
Primary Underlying Risk	Derivative Instruments		on Derivative Instruments
Commodity price
WTI crude oil futures contracts	$	183,869	$	(165,339)

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
WTI crude oil futures contracts	$	1,932,740		22

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
WTI crude oil futures contracts	$	4,481,380		46

Note 5 – Financial Highlights

The following table presents per unit performance data and other, supplemental financial data for the period January 1, 2012 through June 30, 2012 and for the period from commencement of operations (February 23, 2011) through June 30, 2011. This information has been derived from information presented in the financial statements.

Per Share Operation Performance for January 1, 2012 through June 30, 2012
Net asset value at beginning of period	$	44.45
Income from investment operations:
Investment income		0.02
Net realized and unrealized loss on commodity futures contracts		(4.21	)
Total expenses		(1.69	)
Net decrease in net asset value		(5.88	)
Net asset value at end of period	$	38.57
Total Return		(13.23	)%
Ratios to Average Net Assets (Annualized)
Total expense		7.59	%
Net investment loss		(7.51	)%

Per Share Operation Performance from commencement of operations (February 23, 2011) through June 30, 2011
Net asset value at beginning of period	$	50.00
Income from investment operations:
Investment income		0.01
Net realized and unrealized gain on commodity futures contracts		0.19
Total expenses		(1.75	)
Net decrease in net asset value		(1.55	)
Net asset value at end of period	$	48.45
Total Return		(3.10	)%
Ratios to Average Net Assets (Annualized)
Total expense		9.69	%
Net investment loss		(9.61	)%

Total returns are calculated based on the change in value during the period. An individual shareholder’s total return and ratios may vary from the above total returns and ratios based on the timing of contributions to and withdrawals from the Fund. The ratios, excluding non-recurring expenses, have been annualized.

The Sponsor may, at its discretion, pay certain expenses on behalf of the Fund. For the period April 1, 2012 to June 30, 2012, the expenses paid by Fund were reduced by approximately $14,500. No expenses were paid by the Sponsor for the prior three month period of 2012, and no expenses were paid by the Sponsor for the period from the commencement of operations (February 23, 2011) through June 30, 2011.

Note 6 – Organizational and Offering Costs

Expenses incurred in organizing of the Trust and the initial offering of the Shares of the Fund, including applicable SEC registration fees, were borne directly by the Sponsor. The Fund will not be obligated to reimburse the Sponsor.

Note 7 – Subsequent Events

The Trust evaluates subsequent events through the date when financial statements are filed with the SEC.

For the period July 1, 2012 through August 9, 2012, there was nothing to report.

TEUCRIUM SOYBEAN FUND

STATEMENTS OF ASSETS AND LIABILITIES

	June 30, 2012		December 31, 2011
	(Unaudited)
Assets

Equity in BNY Mellon trading accounts:
Cash and cash equivalents	$	2,240,405	$	2,055,369
Soybean futures contracts		148,038		9,994
Collateral, due from broker		39,112		290,694
Interest receivable		105		84
Other assets		35,785		-
Total assets		2,463,445		2,356,141

Liabilities

Soybean futures contracts		-		164,663
Management fee payable to Sponsor		2,966		1,782
Other liabilities		20,671		3,266
Total liabilities		23,637		169,711

Net assets	$	2,439,808	$	2,186,430

Shares outstanding		100,004		100,004

Net asset value per share	$	24.40	$	21.86

Market value per share	$	24.38	$	22.06

The accompanying notes are an integral part of these financial statements.

TEUCRIUM SOYBEAN FUND

SCHEDULE OF INVESTMENTS

June 30, 2012

(Unaudited)

	Fair		Percentage of			Notional
Description: Assets	Value		Net Assets			Amount

Cash equivalents
Money market funds
Dreyfus Cash Management Plus	$	2,240,405		91.83	%

Commodity futures contracts
United States soybean futures contracts
CBOT Soybean futures (12 contracts, settlement date November 14, 2012)	$	65,888		2.70	%	$	856,650
CBOT Soybean futures (10 contracts, settlement date January 14, 2013)		65,750		2.69			713,250
CBOT Soybean futures (14 contracts, settlement date November 14, 2013)		16,400		0.67			882,525
	$	148,038		6.06	%	$	2,452,425

The accompanying notes are an integral part of these financial statements.

TEUCRIUM SOYBEAN FUND

SCHEDULE OF INVESTMENTS

December 31, 2011

	Fair		Percentage of			Notional
Description: Assets	Value		Net Assets			Amount

Cash equivalents
Money market funds
Dreyfus Cash Management Plus	$	2,055,369		94.01	%

Commodity futures contracts
United States soybean futures contracts
CBOT Soybean futures (11 contracts, settlement date May 14, 2012)	$	9,994		0.46	%	$	669,625

	Fair		Percentage of			Notional
Description: Liabilities	Value		Net Assets			Amount

Commodity futures contracts
United States soybean futures contracts
CBOT Soybean futures (12 contracts, settlement date March 14, 2012)	$	81,898		3.75	%	$	724,650
CBOT Soybean futures (13 contracts, settlement date November 14, 2012)		82,765		3.78			782,763
	$	164,663		7.53	%	$	1,507,413

The accompanying notes are an integral part of these financial statements.

TEUCRIUM SOYBEAN FUND

STATEMENTS OF OPERATIONS

(Unaudited)

	Three months ended June 30, 2012			Six months ended June 30, 2012
Income
Realized and unrealized gain on trading of commodity futures contracts:
Realized gain on commodity futures contracts	$	67,640		$	77,981
Net change in unrealized appreciation or depreciation on commodity futures contracts		(24,765	)		302,707
Interest income		1,032			1,432
Total income		43,907			382,120

Expenses

Management fees		11,728			17,778
Professional fees		55,151			55,151
Distribution and marketing fees		37,133			61,885
Custodian fees and expenses		32,211			64,421
Business permits and licenses fees		1,824			1,824
General and administrative expenses		9,282			9,282
Brokerage commissions		653			996
Other expenses		2,151			2,151
Total expenses		150,133			213,488

Net (loss) income	$	(106,226	)	$	168,632

Net income per share	$	0.34		$	2.54
Net (loss) income per weighted average share	$	(0.54	)	$	1.10
Weighted average shares outstanding		198,374			152,614

The accompanying notes are an integral part of these financial statements.

TEUCRIUM SOYBEAN FUND

STATEMENT OF CHANGES IN NET ASSETS

(Unaudited)

	Six months ended
	June 30, 2012
Operations
Net income	$	168,632

Capital transactions
Issuance of Shares		4,154,488
Redemption of Shares		(4,069,742	)
Total capital transactions		84,746
Net change in net assets		253,378

Net assets, beginning of period		2,186,430

Net assets, end of period	$	2,439,808
Net asset value per share at beginning of period	$	21.86

At end of period	$	24.40

The accompanying notes are an integral part of these financial statements.

TEUCRIUM SOYBEAN FUND

STATEMENT OF CASH FLOWS

(Unaudited)

	Six months ended
	June 30, 2012
Cash flows from operating activities:
Net income	$	168,632
Adjustments to reconcile net income to net cash provided by operating activities:
Net change in unrealized appreciation or depreciation on commodity futures contracts		(302,707	)
Changes in operating assets and liabilities:
Collateral, due from broker		251,582
Interest receivable		(21	)
Other assets		(35,785	)
Management fee payable to Sponsor		1,184
Other liabilities		17,405
Net cash provided by operating activities		100,290

Cash flows from financing activities:
Proceeds from sale of Shares		4,154,488
Redemption of Shares		(4,069,742	)
Net cash provided by financing activities		84,746

Net change in cash and cash equivalents		185,036
Cash and cash equivalents, beginning of period		2,055,369
Cash and cash equivalents, end of period	$	2,240,405

The accompanying notes are an integral part of these financial statements.

NOTES TO FINANCIAL STATEMENTS

June 30, 2012

(Unaudited)

Note 1 – Organization and Operation

Teucrium Soybean Fund (referred to herein as “SOYB” or the “Fund”) is a commodity pool that is a series of Teucrium Commodity Trust (“Trust”), a Delaware statutory trust formed on September 11, 2009. The Fund issues common units, called the “Shares,” representing fractional undivided beneficial interests in the Fund. The Fund continuously offers Creation Baskets consisting of 25,000 Shares at their Net Asset Value (“NAV”) to “Authorized Purchasers” through Foreside Fund Services, LLC, which is the distributor for the Fund (the “Distributor”). Authorized Purchasers sell such Shares, which are listed on the New York Stock Exchange (“NYSE”) Arca under the symbol “SOYB,” to the public at per-Share offering prices that reflect, among other factors, the trading price of the Shares on the NYSE Arca, the NAV of the Fund at the time the Authorized Purchaser purchased the Creation Baskets and the NAV at the time of the offer of the Shares to the public, the supply of and demand for Shares at the time of sale, and the liquidity of the markets for soybean interests. The Fund’s Shares trade in the secondary market on the NYSE Arca at prices that are lower or higher than their NAV per Share.

The investment objective of the Fund is to have the daily changes in percentage terms of the Shares’ Net Asset Value (“NAV”) reflect the daily changes in percentage terms of a weighted average of the closing settlement prices for three futures contracts for soybeans (“Soybean Futures Contracts”) that are traded on the Chicago Board of Trade (“CBOT”). Except as described in the following paragraph, the three Soybean Futures Contracts will be: (1) second-to-expire CBOT Soybean Futures Contract, weighted 35%, (2) the third-to-expire CBOT Soybean Futures Contract, weighted 30%, and (3) the CBOT Soybean Futures Contract expiring in the November following the expiration month of the third-to-expire contract, weighted 35%.

The Fund commenced investment operations on September 19, 2011 and has a fiscal year ending December 31. The Fund’s sponsor is Teucrium Trading, LLC (the “Sponsor”). The Sponsor is responsible for the management of the Fund. The Sponsor is a member of the National Futures Association (the “NFA”) and became a commodity pool operator registered with the Commodity Futures Trading Commission (the “CFTC”) effective November 10, 2009.

On June 17, 2011, the Fund’s initial registration of 10,000,000 shares on Form S-1 was declared effective by the SEC. On September 19, 2011, the Fund listed its shares on the NYSE Arca under the ticker symbol “SOYB.” On the business day prior to that, the Fund issued 100,000 shares in exchange for $2,500,000 at the Fund’s initial NAV of $25 per share. The Fund also commenced investment operations on September 19, 2011 by purchasing soybean commodity futures contracts traded on the CBOT. On December 31, 2010, the Fund had four shares outstanding, which were owned by the Sponsor.

The accompanying unaudited financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X promulgated by the U.S. Securities and Exchange Commission (the “SEC”) and, therefore, do not include all information and footnote disclosures required under accounting principles generally accepted in the United States of America (“GAAP”). The financial information included herein is unaudited; however, such financial information reflects all adjustments which are, in the opinion of management, necessary for the fair presentation of the Fund’s financial statements for the interim period. It is suggested that these interim financial statements be read in conjunction with the financial statements and related notes included in the Trust’s Annual Report on Form 10-K and Form 10-K/A, as well as the most recent amendment to Form S-1, dated July 6, 2012, as applicable. The operating results from January 1, 2012 through June 30, 2012 are not necessarily indicative of the results to be expected for the full year ending December 31, 2012.

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

Revenue Recognition

Commodity futures contracts are recorded on the trade date. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized appreciation or depreciation on commodity futures contracts are reflected in the statements of operations as the difference between the original contract amount and the fair market value as of the last business day of the year or as of the last date of the financial statements. Changes in the appreciation or depreciation between periods are reflected in the statements of operations. Interest on cash equivalents and deposits with the Futures Commission Merchant are recognized on the accrual basis. The Fund earns interest on its assets denominated in U.S. dollars on deposit with the Futures Commission Merchant. In addition, the Fund earns interest on funds held at the custodian at prevailing market rates for such investments.

Brokerage Commissions

Brokerage commissions on all open commodity futures contracts are accrued on a full-turn basis.

Income Taxes

For tax purposes, the Fund will be treated as a partnership. The Fund does not record a provision for income taxes because the partners report their share of the Fund’s income or loss on their income tax returns. The financial statements reflect the Fund’s transactions without adjustment, if any, required for income tax purposes. In accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification Topic (“ASC”) 740-10-25-6, “Accounting for Uncertainty in Income Taxes,” the Fund is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The Fund files an income tax return in the U.S. federal jurisdiction, and may file income tax returns in various U.S. states and foreign jurisdictions. The Fund is subject to income tax examinations by major taxing authorities for all tax years since inception. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in the Fund recording a tax liability that reduces net assets. Based on its analysis, the Fund has determined that it has not incurred any liability for unrecognized tax benefits as of June 30, 2012 and December 31, 2011. However, the Fund’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, ongoing analysis of and changes to tax laws, regulations, and interpretations thereof.

Creations and Redemptions

The size of a Creation Basket and a Redemption basket was changed effective March 5, 2012 from 50,000 to 25,000 shares.

As outlined in the most recent Amendment to the Form S-1 dated July 6, 2012, 50,000 represents two Redemption Baskets for the Fund and a minimum level of shares.

Allocation of Shareholder Income and Losses

Profit or loss is allocated among the shareholders of the Fund in proportion to the number of shares each shareholder holds as of the close of each month.

Cash Equivalents

bank may, at times, exceed federally insured limits. The Fund had a balance of $2,240,405 and $2,055,369 in money market funds at June 30, 2012 and December 31, 2011, respectively; these balances are included in cash and cash equivalents on the statements of assets and liabilities.

Collateral, Due from/to Broker

Margin is the minimum amount of funds that must be deposited by a commodity interest trader with the trader’s broker to initiate and maintain an open position in futures contracts. A margin deposit acts to assure the trader’s performance of the futures contracts purchased or sold. Futures contracts are customarily bought and sold on initial margin that represents a very small percentage of the aggregate purchase or sales price of the contract. Because of such low margin requirements, price fluctuations occurring in the futures markets may create profits and losses that, in relation to the amount invested, are greater than are customary in other forms of investment or speculation. As discussed below, adverse price changes in the futures contract may result in margin requirements that greatly exceed the initial margin. In addition, the amount of margin required in connection with a particular futures contract is set from time to time by the exchange on which the contract is traded and may be modified from time to time by the exchange during the term of the contract. Brokerage firms, such as the Fund’s clearing brokers, carrying accounts for traders in commodity interest contracts generally require higher amounts of margin as a matter of policy to further protect themselves. Over-the-counter trading generally involves the extension of credit between counterparties, so the counterparties may agree to require the posting of collateral by one or both parties to address credit exposure.

Ongoing or “maintenance” margin requirements are computed each day by a trader’s clearing broker. When the market value of a particular open futures contract changes to a point where the margin on deposit does not satisfy maintenance margin requirements, a margin call is made by the broker. If the margin call is not met within a reasonable time, the broker may close out the trader’s position. With respect to the Fund’s trading, the Fund (and not its shareholders personally) is subject to margin calls.

Finally, many major U.S. exchanges have passed certain cross margining arrangements involving procedures pursuant to which the futures and options positions held in an account would, in the case of some accounts, be aggregated and margin requirements would be assessed on a portfolio basis, measuring the total risk of the combined positions.

Calculation of Net Asset Value

The Fund’s NAV is calculated by:

•

Taking the current market value of its total assets,

•

Subtracting any liabilities, and

In determining the value of Soybean Futures Contracts, the administrator uses the CBOT closing price (typically 3:00 p.m. New York time). The administrator determines the value of all other Fund investments as of the earlier of the close of the NYSE or 4:00 p.m. New York time. The value of over-the-counter soybean interests is determined based on the value of the commodity or futures contract underlying such soybean interest, except that a fair value may be determined if the Sponsor believes that the Fund is subject to significant credit risk relating to the counterparty to such soybean interest. For purposes of financial statements and reports, the Sponsor will recalculate the NAV where necessary to reflect the “fair value” of a Futures Contract when the Futures Contract closes at its price fluctuation limit for the day. Treasury securities held by the Fund are valued by the administrator using values received from recognized third-party vendors and dealer quotes. NAV includes any unrealized profit or loss on open soybean interests and any other income or expense accruing to the Fund but unpaid or not received by the Fund.

Sponsor Fee and Allocation of Expenses

assets, at a rate equal to 1.00% per annum. For the period from January 1, 2012 through June 30, 2012, the Fund recorded $17,778 in management fees to the Sponsor. The Fund generally pays for all brokerage fees, taxes and other expenses, including licensing fees for the use of intellectual property, registration or other fees paid to the SEC, the Financial Industry Regulatory Authority (“FINRA”), formerly the National Association of Securities Dealers, or any other regulatory agency in connection with the offer and sale of subsequent Shares after its initial registration and all legal, accounting, printing and other expenses associated therewith. The Fund also pays its portion of the fees and expenses associated with the Trust’s tax accounting and reporting requirements. For an initial period, the Sponsor waived the payment by the Fund of certain expenses. This election was subject to change by the Sponsor, at its discretion. For the period April 1, 2012 to June 30, 2012, this resulted in no reduction of fees paid by the Fund. For the period January 1, 2012 to June 30, 2012, this resulted in a reduction of fees to the Fund of approximately $4,200. Certain aggregate expenses common to all Funds managed by the Sponsor are allocated to each Fund based on activity drivers deemed most appropriate by the Sponsor for such expenses. All asset-based fees and expenses are calculated on the prior day’s net assets.

Use of Estimates

Fair Value - Definition and Hierarchy

Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Fund’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Fund uses prices and inputs that are current as of the measurement date, including periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many securities. This condition could cause a security to be reclassified to a lower level within the fair value hierarchy. When such a situation exists on a quarter close, the Sponsor will calculate the NAV on a particular day using the Level 1 valuation, but will later recalculate the NAV for the impacted Fund based upon the valuation inputs from these alternative verifiable sources (Level 2 or Level 3) and will report such NAV in its applicable financial statements and reports.

On June 30, 2012 and December 31, 2011, in the opinion of the Trust and the Fund, the reported value of the Soybean Futures Contracts traded on the CBOT fairly reflected the value of the Soybean Futures Contracts held by the Fund, and no adjustments were necessary.

Net Income (Loss) per Share

New Accounting Pronouncements

Note 3 – Fair Value Measurements

June 30, 2012							Balance
							as of
							June 30,
Assets:	Level 1		Level 2		Level 3		2012
Cash equivalents	$	2,240,405	$	-	$	-	$	2,240,405
Soybean futures contracts		148,038		-		-		148,038
Total	$	2,388,443	$	-	$	-	$	2,388,443

December 31, 2011							Balance
							as of
							December 31,
Assets:	Level 1		Level 2		Level 3		2011
Cash equivalents	$	2,055,369	$	-	$	-	$	2,055,369
Soybean futures contracts		9,994		-		-		9,994
Total	$	2,065,363	$	-	$	-	$	2,065,363

							Balance
							as of
							December 31,
Liabilities:	Level 1		Level 2		Level 3		2011
Soybean futures contracts	$	164,663	$	-	$	-	$	164,663

During the period ended June 30, 2012 the Fund did not have any significant transfers between any of the levels of the fair value hierarchy.

Note 4 -Derivative Instruments and Hedging Activities

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 period ended June 30 2012, the Fund had invested only in soybean commodity futures contracts.

Futures Contracts

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 following tables identify the fair value amounts of derivative instruments included in the statements 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. The following tables also identify the net gain and loss amounts included in the statements of operations as realized and unrealized gains and losses on trading of commodity futures contracts, categorized by primary underlying risk, for the period from April 1, 2012 to June 30, 2012 and for the period from January 1, 2012 to June 30, 2012.

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

Primary Underlying Risk	Asset Derivatives		Liability Derivatives		Net Derivatives
Commodity price
Soybean futures contracts	$	148,038	$	-	$	148,038

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

Primary Underlying Risk	Asset Derivatives		Liability derivatives			Net Derivatives
Commodity price
Soybean futures contracts	$	9,994	$	(164,663	)	$	(154,669	)

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

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

	Realized Gain on		Net Change in Unrealized Loss
Primary Underlying Risk	Derivative Instruments		on Derivative Instruments
Commodity price
Soybean futures contracts	$	67,640	$	(24,765)

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

	Realized Gain on		Net Change in Unrealized Gain
Primary Underlying Risk	Derivative Instruments		on Derivative Instruments
Commodity price
Soybean futures contracts	$	77,981	$	302,707

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
Soybean futures contracts	$	2,452,425		36

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
Soybean futures contracts	$	2,177,038		36

Note 5 – Financial Highlights

The following table presents per unit performance data and other supplemental financial data for the period January 1, 2012 through June 30, 2012. This information has been derived from information presented in the financial statements.

Per Share Operation Performance
Net asset value at beginning of period	$	21.86
Income from investment operations:
Investment income		0.01
Net realized and unrealized gain on commodity futures contracts		3.93
Total Expenses		(1.40	)
Net increase in net asset value		2.54
Net asset value at end of period	$	24.40
Total Return		11.62	%
Ratios to Average Net Assets (Annualized)
Total expense		12.11	%
Net investment loss		(12.03	)%

For an initial period, the Sponsor waived the payment by the Fund of certain expenses. This election was subject to change by the Sponsor, at its discretion. For the period January 1, 2012 to June 30, 2012, this resulted in a reduction of fees to the Fund of approximately $4,200.

Note 6 – Organizational and Offering Costs

Note 7 – Subsequent Events

The Trust evaluates subsequent events through the date when financial statements are filed with the SEC.

For the period July 1, 2012 through August 9, 2012 there was nothing to report.

TEUCRIUM SUGAR FUND

STATEMENTS OF ASSETS AND LIABILITIES

	June 30, 2012		December 31, 2011
	(Unaudited)
Assets

Equity in BNY Mellon trading accounts:
Cash and cash equivalents	$	882,866	$	2,051,003
Collateral, due from broker		136,276		398,593
Interest receivable		66		86
Other assets		29,692		-
Total assets		1,048,900		2,449,682

Liabilities

Sugar futures contracts		60,984		138,198
Management fee payable to Sponsor		1,674		1,973
Other liabilities		21,204		3,262
Total liabilities		83,862		143,433

Net assets	$	965,038	$	2,306,249

Shares outstanding		50,004		100,004

Net asset value per share	$	19.30	$	23.06

Market value per share	$	19.23	$	22.93

The accompanying notes are an integral part of these financial statements.

TEUCRIUM SUGAR FUND

SCHEDULE OF INVESTMENTS

June 30, 2012

(Unaudited)