Can Chinese Demand Boost The Corn ETF?

Earlier this summer a sight appeared on China’s eastern coast that hadn’t been seen in nearly 15 years: a ship full of U.S. corn docking at a Chinese port. Several more ships packed with U.S. maize followed, sparking speculation over a seemingly sudden and severe shift in the country’s agricultural policies. Historically, China has imported only limited quantities of grain, priding itself on agricultural self sufficiency. But so far in 2010, the country has imported about 1.2 million metric tons from the U.S., the world’s largest producer. The sudden surge in Chinese demand has puzzled analysts, many of whom offer up competing views over the implications of recent purchases. Some see it as a sustainable trend, the arrival of an era of major exports to an increasingly-wealthy Chinese population. Others think the surge in demand for U.S. corn is a non-recurring event driven by recent extreme weather conditions in Russia [...] Click here to read the original article on ETFdb.com. Related Stories: First The CORN ETF, Now Five More Funds Corn ETF (CORN) Debuts Ready Or Not, Here Comes A Corn ETF